Howard Marks has cautioned that the explosive momentum around artificial intelligence bears unmistakable similarities to past market bubbles, even as he conceded that AI may become one of the most transformative technologies of all time. In his latest memo to Oaktree clients -- ‘Is It a Bubble?’ -- Marks wrote that investor enthusiasm, corporate spending and the scale of capital now flooding into AI resemble many historical episodes of “irrational exuberance,” though he stressed that no one can yet say with certainty whether a bubble has fully formed.

Marks said that AI-related capital expenditure has become deeply entwined with economic growth and equity-market performance, with AI stocks responsible for a disproportionate share of the S&P 500’s gains. Nvidia’s ascent -- an 8,000-fold ri

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