Wall Street is warning the AI trade may be overheating as record spending, investor optimism, and soaring valuations fuel fresh fears of a bubble.

U.S. stock index futures rose on Thursday, boosted by strong quarterly update from TSMC that reinforced investor optimism around AI, extending a rally in chip stocks in the previous sessions.

Stocks are climbing following strong profit reports from big banking and technology companies. The S&P 500 rose 0.9% Wednesday, coming off a roller-coaster day where it careened between a sharp loss and modest gain.

AI and tech giants have driven the massive stock gains of the past decade. Collectively, the “Magnificent Seven” earned 698% between 2015 and 2024, according to The Motley Fool. The S&P 500 as a whole returned a comparatively modest 178% in those years.

US stocks jumped Monday in a broad rebound, bouncing back from Friday's rout after President Trump played down the escalating US trade standoff with China and said it "will all be fine!" Stocks recouped some of Friday's hefty losses after Trump dialed back his Friday threat to impose an additional 100% tariff on Chinese goods from Nov.

Does Warren Buffett Know Something Wall Street Doesn't? The Billionaire Is Selling an Ultra-Popular Artificial Intelligence (AI) Stock. The Oracle of Omaha is going against the majority opinion on Wall Street with some of his recent moves.

ZIM Integrated may be undervalued despite high short interest and US-China trade tensions. Read here for an investment analysis of ZIM stock.