Could AI Be Creating a Market Bubble?

AI investment has helped drive the stock market higher, but could it also be creating new risks? Itay Goldstein, Wharton Finance Professor, explains how AI-fueled valuations could spill over into private credit markets and reinforce broader financial vulnerabilities.

ABOUT THE EPISODE Private credit has become one of the fastest-growing areas of finance, but recent defaults, redemption pressures, and valuation concerns are raising new questions about the industry’s stability. Wharton Finance Professor Itay Goldstein explains how AI-driven disruption, liquidity mismatches, and interconnected financial institutions could increase risks across the financial system. He also discusses why concerns about private credit may be part of a larger conversation about market fragility and asset bubbles.

ABOUT THE PODCAST This Week in Business features interviews with Wharton faculty about the latest news, fascinating trends, and issues impacting both consumers and the business world. Episodes are recorded at the Wharton School and published twice per week.

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