Chinese hedge funds warn AI super bubble ready to burst with 80 percent crash coming.

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Everyone agrees AI is changing the world.

That doesn’t automatically mean AI stocks are worth any price.

That’s why this warning caught my attention.

Two Chinese hedge funds, Wealspring Asset and Shanghai Banxia Investment, are arguing that AI stocks have entered a “super bubble.” Wealspring believes some of the hottest AI names could eventually fall more than 80%, while Banxia says the trigger for that unwind may have already appeared.

That’s a pretty bold call.

Wealspring isn’t saying AI is fake.

It’s saying valuations have become detached from reality.

Banxia points to growing pressure on AI business models, including reports that Anthropic’s revenue growth could disappoint relative to the massive spending required to build and run advanced AI systems.

That’s the part worth watching.

The AI boom has been fueled by enormous capital spending. Data centers, chips, networking equipment, and power infrastructure have driven huge gains for companies throughout the supply chain.

Some stocks, including SK Hynix and Micron, have roughly tripled during the AI boom.

But spending money isn’t the same thing as earning money.

If AI companies have to keep pouring billions into infrastructure just to maintain growth, investors will eventually start asking a different question.

Where are the profits?

History is full of technologies that changed the world while many of the early market leaders still suffered brutal stock crashes when expectations got too far ahead of reality.

That doesn’t prove an 80% collapse is coming.

But it does explain why more professional investors are starting to focus less on AI excitement and more on whether today’s valuations can actually be justified by future cash flow.

That’s usually the question that matters most once a market enters bubble territory.