Investors fretting over a U.S. AI bubble find fresh options across the Atlantic. The looming SpaceX IPO and pending listings for OpenAI and Anthropic have driven headlines and heightened anxiety about sky‑high prices for innovation, and diversify portfolios amid mounting regulatory scrutiny of AI firms.

Europe offers no easy refuge. Acadian’s Owen Lamont notes that South Korea’s SK Hynix supplied nearly 8% of global equity returns in May, underscoring that Asian chipmakers are as tangled in AI as U.S. peers. In a typical S&P 500 fund, 47% of assets sit in technology and communications, with Nvidia alone accounting for about 8%. This weighty exposure limits the defensive appeal of European equities.

U.S. equities now trade at 41 times inflation‑adjusted earnings, flirting with a 25‑year valuation peak. That compression leaves little margin for error, and European markets mirror the same AI‑driven concentration risks. Consequently, balanced allocation across sectors remains the prudent path.