The biggest risk to the AI boom may not be AI itself — it could be bond yields.
Bank of America says the 10 largest AI stocks now account for around 41% of the US stock market, roughly matching the concentration seen at the peak of the dot-com bubble in 2000.
History shows a similar pattern:
• Nifty Fifty — 1973: US yields surged 2.0 percentage points
• Japan — 1989: Japanese yields jumped 2.3 points
• Dot-com — 2000: US yields climbed 2.6 points
In all three cases, the bubble ended after bond yields rose by roughly 2 percentage points or more.
Today, the US 10-year Treasury yield is already up 1.27 percentage points since February.
As BofA puts it:
“Quickest way to end US boom is surge in bond yields.”
For investors watching the AI rally, bond yields may be just as important as earnings, valuations and AI growth.
$QNT
$WLD
$NEAR
Bank of America says the 10 largest AI stocks now account for around 41% of the US stock market, roughly matching the concentration seen at the peak of the dot-com bubble in 2000.
History shows a similar pattern:
• Nifty Fifty — 1973: US yields surged 2.0 percentage points
• Japan — 1989: Japanese yields jumped 2.3 points
• Dot-com — 2000: US yields climbed 2.6 points
In all three cases, the bubble ended after bond yields rose by roughly 2 percentage points or more.
Today, the US 10-year Treasury yield is already up 1.27 percentage points since February.
As BofA puts it:
“Quickest way to end US boom is surge in bond yields.”
For investors watching the AI rally, bond yields may be just as important as earnings, valuations and AI growth.
$QNT
$WLD
$NEAR
