The world of artificial intelligence is making a significant comeback—and it's not going unnoticed by investors. But here's where it gets controversial: even with renewed enthusiasm, questions about high valuations and market sustainability remain. Recently, US stock markets saw a rally in AI-related stocks, illustrating renewed confidence after a period of uncertainty.
On Monday, shares of Nvidia surged by 5.8%, demonstrating strong investor interest, while Broadcom also gained 2.6%. Microsoft, after an eight-day losing streak—their longest since 2011—climbed 1.9%, signaling a potential turnaround in market sentiment toward tech giants heavily involved in AI development.
Meanwhile, the looming threat of a prolonged government shutdown in the United States is temporarily sidestepped. Lawmakers in the Senate are currently voting on a deal to reopen the government. However, the package still needs approval from the House and the formal signing by President Donald Trump, who has already expressed support for the deal. This political landscape remains tense but cautiously hopeful.
That said, concerns about the exaggerated valuations of AI companies haven't completely disappeared. Take CoreWeave, for example, which recently released third-quarter earnings. This company primarily rents Nvidia graphics cards to AI-focused firms like Google and Microsoft—a business model closely tied to the fortunes of the AI sector. Despite a remarkable 134% revenue increase year-over-year, CoreWeave still posted an overall net loss and offered profit forecasts that fell short of market expectations.
This pattern of high revenue paired with significant losses resembles that of OpenAI, an industry pioneer that ignited the current AI craze despite operating at a loss. Although drawing direct parallels is a bit of a stretch, the trend highlights the high risk and high reward nature of investing in this sector.
Looking ahead, Mark Haefele, the Chief Investment Officer of UBS’s global wealth management division, remains optimistic. He believes AI stocks will be key drivers of overall equity market growth. With the political uncertainties easing—assuming the government shutdown is truly resolved—markets might have cleared an important hurdle, potentially paving the way for further gains.
And now, shifting focus to global developments, Russia is making a slow but determined entrance into the rare earth metals arena. On October 15, 2025, Russian President Vladimir Putin instructed officials to develop a comprehensive roadmap by December 1 for the long-term extraction and production of rare and rare earth metals. Though Russia's progress is behind that of China, the leading player in this field, it still holds significant reserves—estimated at about 3.8 million tonnes, according to the US Geological Survey. This puts Russia ahead of the United States, which has reserves of approximately 1.9 million tonnes.
Despite being late to the game, Russia’s entry into the rare earths market could influence global supply chains, especially as these materials become increasingly vital for advanced technology sectors, including electronics, aerospace, and renewable energy. The race for control over these crucial resources is becoming more strategic—and potentially more contentious.
What do you think: Are AI valuations sustainable? And will Russia’s push into rare earths reshape global power dynamics? Share your thoughts and join the discussion below!
