Who cares if AI is a bubble? Citi says manias can be 'quite profitable'

Citigroup isn't losing sleep over the chance that a possible bubble in artificial intelligence stocks will burst anytime soon. Dirk Willer, the bank's global head of macro strategy and asset allocation, said recent choppiness in the AI trade doesn't mean the bubble is ending. As a result, investors should stay in the stocks, he said. "While the U.S. equity market has triggered our definition of a bubble, which creates some risks, it is important to stress that bubbles are at first typically quite profitable," Willer wrote to clients in a note on Thursday. "We therefore would not overstress the recent AI wobbles, as they are unlikely to herald the end of the bubble." Willer said Citi's equity strategist is focused more closely now on corporate profits than the bubble popping. The bubble pea