This week’s equity market wobble, which saw a retreat in U.S. artificial intelligence-related stocks amid ongoing concerns over stretched valuations, has thrust contagion fears into the spotlight for global investors. Goldman Sachs CEO David Solomon warned this week of a “likely” 10-20% drawdown in equity markets at some point within the next two years, while the International Monetary Fund and the Bank of England have both sounded the alarm bells. Bank of England Governor Andrew Bailey highlighted the possibilities of an AI bubble in an interview with CNBC on Thursday, noting that the “very positive productivity contribution” from technology companies could be offset by uncertainty around future earning streams in the sector. “We have to be very alert to these risks,” Bailey said. Legrand is one of several European companies which is benefitting from the AI boom. The French company, which sells products to Alphabet, Amazon and others to help cool servers, has seen its shares surge 37% this year, roughly as much as Nvidia.

Full report : Tech stocks head for worst week since April after a $900 billion AI sell-off.