AI boom may fuel inflation: Analysts warn tech investment could drive costs up; risk seen by 2026

Global stock markets, fueled by AI excitement, might be overlooking a significant inflation threat. Analysts warn that the massive tech investment in data centers, particularly by the ‘Magnificent Seven,’ is driving up costs for energy and advanced chips. This surge in spending, projected to reach trillions, could lead to supply bottlenecks and spiraling investment expenses, potentially pricking the tech bubble.