JPMorgan’s Pinto Warns of AI Valuation Correction, Cites Productivity Concerns

JPMorgan Vice Chairman Daniel Pinto has flagged a looming correction in AI-related valuations, suggesting the market may be overestimating the speed of productivity gains. Current pricing implies a transformative leap that's unlikely to materialize at the projected pace, potentially triggering Ripple effects across the S&P 500 and broader tech sector.

Wall Street's caution aligns with McKinsey projections showing $371 billion in near-term data center investments by tech giants, with infrastructure costs ballooning to $5.2 trillion by 2030. While maintaining long-term Optimism about AI's potential, Pinto emphasizes the disconnect between current valuations and realistic timelines for ROI.

The warning comes as crypto markets show divergent trends, with AI-focused tokens like AGI and FET demonstrating volatility while infrastructure plays like FIL and DOT maintain steady institutional interest. No direct crypto impact was cited, though market sentiment shifts could affect capital rotation between tech and digital assets.