Why Wall Street Is Racing Into AI, and Why Some Fear a Bubble
Wall Street is being driven by FOMO, the fear of missing out, as investors rush to capture the next big AI opportunity. In just a few days, more than $100 billion flowed into large transactions tied to artificial intelligence, including SpaceX’s $75 billion mega-deal, Anthropic’s $35 billion financing round, and expectations of future OpenAI offerings. The article says this surge has pushed capital markets back to the center of attention.
The piece explains that FOMO is a psychological pattern in which investors fear being left out of gains more than they fear losses. Once enough people think that way, rising prices attract more buyers, which pushes prices even higher and intensifies the rush. Cristina Hooper, chief market strategist at Man Group, said markets are in a battle between fear and FOMO, but that for now, “fear of missing out” is winning.
That dynamic is especially striking because the broader backdrop would normally encourage caution, with regional war, rising inflation, and global uncertainty. Instead, the AI story is pulling capital in the opposite direction. Companies worldwide have already raised about $4.7 trillion this year through shares, bonds, and bank loans, much of it aimed at data centers, chips, power plants, and other infrastructure needed for the AI buildout.
The article warns that FOMO has often been a warning sign before major bubbles, citing the 1920s before the 1929 crash, the late-1990s dot-com boom, and speculative waves after the coronavirus pandemic. Jim Bianco, president of Bianco Research, said investor appetite is nearly unlimited as long as the theme is AI, while Charles Lemonides of ValueWorks warned that the most dangerous market periods are when investors stop asking what an asset is worth and only ask how to get in first. Even so, the rally may continue, because about $7.9 trillion remains parked in money-market funds, waiting for opportunities, leaving open the question of whether 2026’s FOMO will fuel a historic tech revolution or end as another costly market excess.
