Panmure Liberum Warns AI Bubble Unwind Could Drag S&P 500 Down to 5,000 Next Year

UK investment bank Panmure Liberum has issued a sharp warning on equity valuations, forecasting that an impending unwind of the artificial intelligence boom could trigger a severe market correction and push the S&P 500 down to the 5,000 level next year.
Strategists at the firm argue that current index levels reflect unsustainable valuation multiples driven by extreme market concentration in mega-cap technology names.
The bank cautions that as capital expenditure on artificial intelligence infrastructure peaks without delivering proportional enterprise productivity gains and software monetization, valuation compression will inevitably follow, leaving broader equity benchmarks highly vulnerable to a deep macroeconomic repricing.