Recent IMF warnings in its Global Financial Stability Report have amplified trader focus on AI bubble risks, citing sky-high valuations, $650 billion in sector debt, and $1.4 trillion in circular hyperscaler commitments to weaker AI firms that may not deliver expected profits. Broadcom’s CEO likened investor flows to casino gambling, triggering sharp drops in semiconductor stocks and South Korea’s KOSPI amid Chinese chip competition concerns. Ray Dalio and Michael Burry have flagged classic bubble traits tied to rising rates and heavy capex on data centers and large language model infrastructure by hyperscalers like Microsoft and Google. Lower-than-expected OpenAI revenue figures and delayed IPO plans add to doubts about near-term returns, while upcoming earnings and potential Anthropic listing could test sentiment further.