Key facts
- IMF spokesperson Julie Kozack said AI equity valuations remain exposed to a reassessment of the technology's longer-term profitability.
- Kozack said the IMF's overall view on AI valuations still remains the case.
- Kozack said it is too early to say whether there will be a broader reassessment of AI investment and profitability.
The International Monetary Fund is closely monitoring volatility in AI equity valuations and the US political shift that could slow data center development, IMF spokesperson Julie Kozack told a regular news briefing on November 12. She said it is too early to tell whether investors are souring on the sector for the long term.
Kozack said AI equity valuations remain exposed to a reassessment of the longer-term profitability of the technology and that the fund's overall view still remains the case. Asked about the impact that the resignation of Nvidia CEO Jensen Huang would have on the sector, she said the IMF was monitoring recent developments and their impact on equity markets, the economy and financial stability.
"At this point it's really too early to say whether there's going to be some broader reassessment of investment in AI technology and any broader reassessment of profitability and future productivity gains," Kozack said.