From artificial intelligence to ‘absolute insanity,’ these are the 3 ingredients needed to fuel the next stock market bubble

• The artificial intelligence boom could turn into “absolute insanity” if a stock market bubble forms, according to TS Lombard.
• The investment firm outlined the three key ingredients needed to create a stock market bubble.
• “The AI frenzy… in the past few weeks has the hallmarks of a potential bubble. But we are not in one right now,” TS Lombard said.

Artificial intelligence has emerged on Wall Street as the new theme that is driving stock market prices higher, and it could turn into “absolute insanity” if a bubble eventually forms, according to a note this week from TS Lombard.

The firm said that there are three key ingredients needed to form a stock market bubble, but one of them is currently missing, leading them to conclude that stocks are not yet in a bubble… yet.