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Schroders' Chief Investment Officer Says AI and Tech Stocks Are "Not a Bubble"

June 17, 2026 at 00:29 EDT

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Johanna Kyrklund, Group Chief Investment Officer at Schroders, said AI-related companies and hyperscalers are not in a "bubble situation," expressing an optimistic stance on equity markets overall.

October 2025 · Schroders CIO View

"Not a Classic Bubble" — Real Demand, Real Profits

Schroders' Chief Investment Officer argues today's AI leaders differ from the dot-com era: revenue growth grounded in genuine demand and substantial profits. The firm rates its caution at "amber" — watchful, not alarmed.

AMBER

Caution level on the AI bubble question (Oct 2025)

~40%

Share of the S&P 500 held by top tech firms

INDEX CONCENTRATION

A small group of large tech stocks now dominates the index.

~40%

Top tech firms

~60%

Rest of S&P 500

BULLISH CASE

Revenue growth on real demand
Faster AI adoption by companies
Real profits from AI leaders
Meta & Google grow via AI ad targeting

CAUTION

Capex could outpace revenue
Slow monetization of investment
Elevated valuations in parts of market
Debt burdens to watch

The Open Question

Bubble — or the early stage of a productivity boom?

Massive capex → Monetization pace → Boom or bust

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