American Century is pushing back against growing claims that the current artificial intelligence boom has entered bubble territory, arguing that today’s investment cycle is underpinned by real innovation and profitability rather than speculation. In its 2026 Outlook, Keith Lee, co-chief investment officer of global growth equity at the firm, acknowledged that concerns about artificial intelligence valuations and concentration risk are valid, but said the asset manager broadly disagrees with conclusions about an artificial intelligence bubble and expects investors to keep allocating to the sector next year.
Lee said that bubbles are usually marked by excess, such as excess capacity and excessive debt, and he stated that the firm currently sees neither issue in the artificial intelligence space. He contrasted the current environment with past speculative bubbles, arguing that spending today shows little of the same excess and that growth is being driven by genuine technological advances and improving profitability. According to Lee, the largest artificial intelligence spenders and most advanced artificial intelligence users are reporting significant bottom line improvements, and he said these companies are already seeing a contribution to profitability from the technology.
American Century maintained a bullish stance but stressed that not all artificial intelligence opportunities are equal, making active management critical to distinguish durable value creators from more speculative ventures. Lee said that investments which are debt financed and have uncertain use cases are right to be questioned, and he added that the firm is seeking more evidence of return on artificial intelligence investment by asking pointed questions of corporate management teams. Similar themes appear in CMC’s 2026 Outlook, which identifies artificial intelligence breakthroughs and bubbles as one of five major trends and notes that having spent nearly US$400 billion ($600 billion) on artificial intelligence investment this year, big tech is expected to extend its spending spree into 2026, with industry leaders planning to allocate up to 35 per cent of annual revenue toward artificial intelligence related investments. However, CMC’s head of markets Kurt Mayell took a more cautious view, warning the technology carries both promise and risk, and urging investors to treat artificial intelligence as a broad ecosystem spanning chips, infrastructure and cloud rather than a single story. The debate is mirrored by GQG Partners, which has been one of the most vocal critics of the artificial intelligence trend and has recorded outflows for the fifth consecutive month, with its resistance to the theme and a critical whitepaper on OpenAI’s economic model underscoring the sharp divide over how sustainable the current artificial intelligence boom will be.
