AI isn’t a bubble but rather an opportunity, JPMorgan’s Erdoes says
Mary Callahan Erdoes, Chief Executive Officer of JP Morgan Asset & Wealth Management, speaks at CNBC’s Delivering Alpha event on November 13, 2025 in New York City.
Adam Jeffery | CNBC
NEW YORK — Investors should focus on the opportunities that artificial intelligence will bring rather than whether there is a bubble right now, according to Mary Callahan Erdoes, CEO of JPMorgan Asset and Wealth Management.
Speaking at the CNBC Delivering Alpha conference on Thursday, Erdoes dismissed concerns about valuation, saying artificial intelligence presents opportunities that have not yet been fully appreciated or understood.
“I feel like we’re on the precipice of a lot of this stuff,” he said during a panel discussion. “So we’re out of touch with the world on pricing, where the AI multiples should be, where they should be. Companies haven’t been able to get that out of use. But it’s, as Hemingway said, ‘How do you go bankrupt?’ “It happens very, very slowly and then all of a sudden it happens, and I think that’s exactly what’s going to happen, AI.”
Concerns about skyrocketing valuations for companies NvidiaAMD and many other companies tied to the AI trade are causing repeated fluctuations in the markets, but they are still hovering around record highs.
Stocks sold off on Thursday, posting their worst day in more than a month as fears surfaced once again.
Michael Arougheti, Chief Executive Officer and Director of Ares Management Corporation, speaks at CNBC’s Delivering Alpha event on November 13, 2025 in New York City.
Adam Jeffery | CNBC
“Artificial intelligence itself is not a bubble. It’s a crazy concept. … We are on the verge of a huge revolution in terms of how companies operate,” Erdoes said. “So if you’re saying to yourself, is AI in a bubble, I think you need to be very detailed about how you answer that, because we’re starting to gain traction in the U.S., but we’re nowhere near the ability to bring everything to the bottom line.”
“You’re going to see explosive growth on both the revenue and expense side, and suppliers are going to have to figure out how to move through the pipeline,” he added.
Erdoes was not alone in his assessment.
Michael Arougheti, CEO of Ares Management, said that the level of investment currently is insufficient compared to the potential that artificial intelligence has.
“We have a long way to go in terms of economic investment relative to the size of the economy,” Arougheti said. “We can’t get supply fast enough to meet short-term demand. So I feel like there’s a lot of hype because the numbers are big and it’s revolutionary.”
Speaking about macro issues, Erdoes said that he does not see a recession on the horizon.
“People have been calling for a recession for five years, but it hasn’t come yet,” he said. Speaking of credit investing, Erdoes added, “If there is no recession on the horizon, this is a great buying opportunity and you should lean in and buy.”
