Wells Fargo says the war in Iran is inflating the AI bubble
Michael M. Santiago/Getty Images The Iran war is further inflating the AI bubble, Wells Fargo says, Though the ceasefire has held, there's little evidence a peace deal and reopening of the Strait of Hormuz are near. Wells Fargo sees the bubble inflating more, but isn't bearish. "Don't fight the tape. Own AI." The war in Iran has only fueled the AI bubble, Wells Fargo analysts said. The firm warned clients in a note that as the Strait of Hormuz is effectively closed, the AI trade bubble will keep inflating, but they don't believe that means it's time to sell AI or that a bubble is close to bursting. "There will be a breaking point, but until then, a closed strait actually fuels the AI bubble trade, in our view," the analysts said in a May 12 note, explaining, "You can't own anything but AI - that's how a bubble forms."' In a more recent note this week, Wells Fargo said, "We believe the closed Strait contributed to the A...