CNBC's Jim Cramer has raised concerns that a growing wave of capital raises linked to the artificial intelligence boom could outpace investor demand, potentially creating a drag on the broader stock market.
The warning comes amid heightened activity in the AI sector, with companies seeking to capitalize on the technology's rapid development.
The market has seen significant momentum in AI-related stocks, but Cramer highlighted the risk of an oversupply of new shares, which could weigh on prices.
This follows broader concerns about speculative trading in high-growth sectors, particularly in semiconductors and tech.
The issue is part of a larger conversation about the sustainability of the current bull market.
While AI has driven strong performance in recent months, the risk of overvaluation and excessive capital inflows into a narrow set of stocks is now under scrutiny.