Norway's $2.4 trillion pension fund warns of AI stock bubble risks
The CEO of Norway's sovereign wealth fund warned that a market crash could wipe out decades of gains driven by artificial intelligence investments.
Nicolai Tangen, head of the Government Pension Fund Global, stated a massive loss in a severe market downturn is not completely improbable. The fund manages $2.4 trillion and holds assets valued at roughly 25% of Norway's government budget. Tangen emphasized that the AI-chip trade currently faces significant valuation risks. Despite record annual profits totaling $186 billion in the first half of the year, Tangen cautioned that a sharp correction could erase wealth built over the past 30 years. He described the current environment as an abnormal period of low taxes, low inflation, and low interest rates. Industry researcher Bill Megginson noted that many established fund managers share this cautious stance on stock valuations while remaining invested. The fund was established to invest Norway's oil and gas revenue.
