India, Nov. 15 -- The global artificial intelligence (AI) rally, which has fueled stock markets to record highs over the past year, is beginning to show signs of strain. Analysts have grown increasingly cautious about sky-high valuations and the potential for a pullback. Recent comments from the CEOs of Morgan Stanley and Goldman Sachs suggest that equity markets may be heading toward a correction, highlighting concerns about elevated technology stock prices.

The initial signs of stress appeared with a sharp sell-off in global tech stocks earlier this week, led by Nvidia and Palantir Technologies, unsettling investors worldwide. The S&P 500 and Nasdaq Composite experienced their largest one-day drops in nearly a month. Nvidia, which rece...