Vanguard’s chief economist Joe Davis cautions that investors have overestimated the short-term potential of artificial intelligence technologies, suggesting a market correction may be imminent. In an article published by the Financial Times, Davis explains that while AI could be more impactful than personal computers, current market valuations reflect unrealistic expectations. The stock market is pricing AI’s success probability at 90 percent, while Davis estimates it at 60-65 percent. Major tech companies like Nvidia have seen extraordinary gains, driving the S&P 500 up 27 percent this year, but Davis suggests that non-tech sectors might ultimately benefit more from AI adoption. He compares the current market situation to 1997, warning that even if AI proves transformational, the leading tech stocks could still face a significant correction.