In its Global Financial Stability Report published on October 13, 2026, the International Monetary Fund identified a potential correction in global equity markets driven by the artificial intelligence sector. The fund highlighted high valuations, increased leverage, and the concentration of market gains among a small group of US technology companies as primary risk factors.
Since the launch of ChatGPT in November 2022, AI-related stocks have contributed 75% of the S&P 500 returns and 80% of its earnings growth. The Magnificent Seven group, which includes Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, now accounts for over 35% of the index's market capitalization, compared to 12% a decade ago.
Cloud and data-center operators, known as hyperscalers, now represent 10% of global investment-grade bond issuance, up from less than 1% in 2024. The IMF noted $300 billion in transactions between these firms and smaller AI companies, alongside $650 billion in associated debt. These links create exposure between major players and more volatile entities.
Market pressures led to the cancellation of a $5 billion Australian data-center IPO in October 2026. Additionally, Asian chip stocks experienced volatility, with the Kospi 200 index falling more than 8% in a single session. The Bank for International Settlements and Fitch Ratings have also expressed concerns regarding potential economic consequences.
