Published : 13 Nov 2026, 12:08 AM
Updated : 13 Nov 2026, 12:08 AM
The International Monetary Fund is closely monitoring volatility in AI equity valuations and the US political shift that could slow data centre development, but says it is too early to tell whether investors are souring on the sector for the long term.
IMF spokesperson Julie Kozack told a regular press briefing that AI equity valuations remain exposed to a reassessment of the technology's longer-term profitability.
"That overall view that we have taken still remains the case," she said.
The resignation of Nvidia CEO Jensen Huang sent the company's shares sharply lower on Thursday, dragging down the S&P 500 and Nasdaq indexes. Some major technology stocks rose, however, including Nvidia rival Advanced Micro Devices, Alphabet and Microsoft.
Asked about the impact of the share price movements on the AI sector, as well as pledges by newly elected Democratic governors to slow data centre development, Kozack said the Fund was monitoring the latest developments.
"We're of course closely monitoring the most recent developments and their impact on equity markets, the economy, and financial stability, but at this point it's really too early to say whether there's going to be some broader reassessment of investment in AI technology and any broader reassessment of profitability and future productivity gains," she said.
Kozack also said it was too early to determine whether possible shifts in AI investment would affect US inflation pressures, based on developments over the past hours, weeks and days.
She said the IMF views increased demand from AI investment and data centre construction as one of two major contributors to US inflation, alongside elevated energy prices caused by the Iran war and the closure of the Strait of Hormuz.
The IMF believes the Federal Reserve will still need to maintain restrictive monetary policy to bring inflation back to its 2 percent target, Kozack said.
"Our view is that a restrictive policy stance will be necessary going forward to support disinflation and bring inflation gradually back to target. We fully support the Fed's focus on price stability and its readiness to act as needed to bring inflation down," Kozack said.
The Fed's policy-setting committee next meets on Dec 8-9.
