AI Bubble Poses Risks for EMs, South African Central Banker Says

The boom in artificial intelligence stocks is creating a risk of a bubble, which could threaten emerging markets, South Africa’s central bank Governor Lesetja Kganyago said.

Kganyago’s comments come hours after Nvidia Corp. delivered a surprisingly strong revenue forecast and pushed back on the idea that the AI industry is in a bubble. The governor joins Wall Street executives including JPMorgan Chase & Co. Vice Chairman Daniel Pinto, who have grown increasingly concerned about the possibility of a bubble forming in AI.

Lesetja Kganyago, governor of South Africa’s Reserve Bank.

Photographer: Waldo Swiegers/Bloomberg

“Despite the promise of AI, there are signs of a bubble inflating,” Kganyago said in a ...