Lone Pine Capital Sounds the Alarm: Why One Elite Hedge Fund Sees an AI Reckoning Coming for Corporate Profits
For years, the artificial intelligence trade has been the market’s most reliable engine of growth, propelling a handful of mega-cap technology stocks to stratospheric valuations and dragging the broader indices along for the ride. But one of the most respected names in the hedge fund world is now warning that the party may be approaching its final act — and that the hangover could be severe. Lone Pine Capital, the $18 billion hedge fund founded by legendary investor Stephen Mandel Jr., laid out a sobering case in its latest investor letter that the AI-fueled rally is exhibiting classic bubble characteristics, and that corporate profits across the economy face a reckoning that few on Wall Street are prepared to confront. The warning, first reported by Business Insider , carries particular weight given Lone Pine’s track record as one of the most successful technology-focused investment firms of the past three decades. A Tiger Cub’s Warning Shot Across Wall Street...