New Delhi, Nov. 25 -- The current rally in artificial intelligence (AI) related investments is justified and sustainable, and there are no signs of a bubble forming at this stage, highlighted a latest report by JP Morgan.

The report noted that while the ingredients for a market bubble do exist, including high expectations and rapid investment flows, the present cycle is supported by strong fundamentals such as massive capital expenditure (Capex) and accelerating adoption.

The report stated that "The ingredients are certainly in place for a market bubble to form, but for now, at least, we believe the rally in AI-related investments is justified and sustainable. Capex is massive, and adoption is accelerating."

It added that historically,...