# FNBO CIO Says AI Boom Carries Both Growth Potential and Bubble Risk By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/31999 Published: 2026-10-14T18:30:11.000Z Updated: 2026-10-14T18:30:11.000Z Section: Investing > Rusty Vanneman said U.S. stock valuations are near historic highs, while AI spending still needs to produce revenue and productivity gains. Artificial intelligence may bring lasting technological change while also contributing to a capital investment bubble, FNBO Chief Investment Officer Rusty Vanneman said, as high U.S. stock valuations raise questions about whether future returns will justify current spending. The Shiller price-to-earnings ratio, which compares stock prices with inflation-adjusted earnings over a decade, is above prior peaks. Vanneman said investors do not need to determine whether the current market resembles 1998, 1999 or 2000. Major technology companies have financed much of their AI capital spending with earnings and cash flow rather than heavy borrowing, limiting one source of financial risk. The investments still need to generate enough revenue and profits to justify their cost. The market also expects AI to deliver substantial productivity and earnings growth. Realized productivity gains have not matched those seen during past technology booms, leaving the scale of the eventual payoff uncertain. Alphabet, Amazon, Meta and Microsoft have disclosed or indicated combined 2026 capital spending of about $715 billion to $740 billion. That estimate includes capital investments beyond AI spending alone. [The companies’ 2026 capital-spending plans]() put the scale of the investment debate in context. ## Links in this article - [The companies’ 2026 capital-spending plans](https://www.tokenpost.com/news/business/29495)