AI hype starting to ‘smell like dot-com era’

In good shape: The Nvidia headquarters in Santa Clara, California. The company has added almost 30% to its market value since announcing its latest sales targets. — Reuters

LONDON: The exuberance surrounding artificial intelligence (AI) has driven a lot of capital into a small corner of the market in a very short space of time, and that has implications for tech-heavy environmental, social and governance (ESG) funds.

According to James Penny, the chief investment officer of TAM Asset Management and a veteran ESG investor, the current mood is reminiscent of the early days of the tech bubble that burst in 2000 and wiped more than 70% off the Nasdaq.