Norway’s $1.8 Trillion Fund Warns: AI Stock Bubble Could Burst

The head of Norway’s sovereign wealth fund—the largest in the world—has issued a stark warning: the rapid rise in artificial intelligence-related stock prices may be a bubble that is about to burst. Nicolai Tangen, who runs the fund, said that valuations for AI-driven companies have grown so fast that a sharp market correction is now a real risk. He did not predict a crash, but he stressed that investors should be prepared for sudden drops. The fund, which holds roughly 1.5% of all globally listed stocks, has significant exposure to U.S. tech giants that have led the AI rally. That means a downturn in this sector would directly hit its bottom line. Tangen’s comments come as global markets show signs of nervousness. While AI has boosted productivity and profits for some firms, critics argue that current prices assume near-perfect future growth. If those expectations fail to materialize, the correction could be severe. For now, the fund is not changing its strategy. However, Tangen’s warning serves as a reminder that even the most powerful investors are watching for cracks in the AI boom. The question is not whether the market will correct, but when—and how deep the fall will be.