[BIS Warns of AI Bubble Risks: Core Company Valuations at High Levels, Risk Premiums Significantly Compressed, Circular Financing Conceals Hazards] BlockBeats News, August 18 — In its annual economic report, the Bank for International Settlements (BIS) stated that optimism surrounding AI over the past year has supported global growth and risk assets, driving accelerated semiconductor procurement, data center construction, and power infrastructure investments, while also keeping financial conditions loose. However, as the scale of AI investments expands, risks are spreading from stock market valuations to corporate bonds, private credit, and supply chain financing. BIS warned that the valuations of core AI companies are already at high levels, with the market's implied long-term earnings growth rates significantly exceeding historical benchmarks. At the same time, the risk premiums for major U.S. stocks have been noticeably compressed, indicating that the risk compensation investors receive is decreasing. If AI investment returns fall short of expectations or inflation forces interest rates to rise again, the stock market will face more intense revaluation pressures. BIS also specifically highlighted that the lack of transparency in AI financing amplifies risks. Some chipmakers and cloud providers are engaging in "circular financing" through equity investments, long-term procurement commitments, computing power leasing, and data center sale-leaseback arrangements. Certain assets may also carry risks of being pledged multiple times. If the equity market undergoes a significant adjustment, corporate credit risks will be reassessed, credit spreads may widen, and financing conditions could tighten further.