The risk of inflation due to investments in artificial intelligence is concerning financial markets
In early 2026, financial markets are under pressure due to the potential acceleration of inflation caused by massive investments in artificial intelligence. This could lead to a revision of the monetary policy by central banks.
In 2025, stock markets in the US, Europe, and Asia reached historical highs due to interest in technology and hopes for a loose monetary policy. The seven largest technology companies provided nearly half of all profits on the US stock market. However, for 2026, concerns are growing about the possible rise in inflation, which may force central banks to halt rate cuts or even increase them, thereby dealing a blow to overvalued AI-related assets.
Analysts at Royal London Asset Management believe that a tight monetary policy could “burst the bubble” in the technology market and do not rule out a global inflation spike by the end of 2026. Key factors of inflation include large-scale data center construction projects by technology companies like Microsoft, Meta, and Alphabet, which increase demand for electricity and semiconductors.
Strategists at Morgan Stanley emphasize that rising prices for chips and electricity do not encourage inflation reduction, and it will remain above the Federal Reserve’s target level of 2% until the end of 2027, particularly due to investments in AI.
Aviva Investors also note the risks for markets related to the halting of rate cuts amid AI investments and economic stimuli in Europe and Japan. This caused nervous drops in Oracle’s shares after announcing increased capital expenditures, and Broadcom warned of margin pressure. At the same time, HP forecasts an increase in the cost of memory for data centers and a decline in profitability in the second half of 2026.
Deutsche Bank forecasts that by 2030, investments in AI data centers could reach $4 trillion, which, in turn, will cause a shortage in the chip and electricity markets, contributing to further inflation increases.
| Factor | Impact on the market |
|---|---|
| Investments in AI | Possible inflation growth, change in monetary policy |
| Chip prices | Price increase, support for inflation |
| Data center construction | Increasing demand for electricity, semiconductors |
