Jeremy Grantham Warns About AI Valuation Bubble

Jeremy Grantham warned recently on The Compound Podcast that generative AI enthusiasm is driving elevated valuations and heavy upfront capital spending. He specifically noted Nvidia's large, costly chip purchases as an example of capital-allocation risk that may precede profits. He urged investors to maintain valuation discipline, diversify exposure, and focus on cash flows and profitability trends to avoid momentum-driven losses.