BlackRock, Vanguard Warn AI Overheating Localized, Not Broad Bubble; Forward P/E at 21x

According to BlackRock, Neuberger Berman, and AllianceBernstein, major global asset managers recently weighed in on AI valuation debates, arguing that while local overheating exists, the market represents structural divergence rather than a broad bubble comparable to the 2000 dot-com era. BlackRock noted that the 12-month forward price-to-earnings ratio stands at approximately 21x, within reasonable ranges, with stock gains accompanying upward revisions to corporate earnings forecasts.

AllianceBernstein flagged emerging risks, observing that rising capital expenditures by cloud providers are straining some companies' cash flows, with certain firms beginning to offload idle computing capacity. This signals a potential moderation in hardware profit expectations and warns that the AI sector's outperformance relative to other industries may narrow.