El-Erian Says AI Is Like Electricity, Warns There Are Some Names That Will ‘End Up In Tears’: Report
Synopsis
During an interview with CNBC, El-Erian explained that there are some AI stocks that have “reasonable” valuations, but added that there is some froth in the sector.
Mohamed El-Erian, Chief Economic Advisor at Allianz, on Wednesday reportedly compared artificial intelligence technology (AI) to electricity, while explaining the booming valuations in the sector.
During an interview with CNBC, El-Erian explained that there are some AI stocks that have “reasonable” valuations, but added that there is some froth in the sector.
“Whether you have electricity or not, [it] is a huge difference. So for me, it makes total sense. What I worry about, is within AI, there are some names that [have] reasonable valuations, but that has pulled other names that I think will end up in tears.”
— Mohamed El-Erian, Chief Economic Advisor, Allianz
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