ECB's Panetta Flags Correction Risk on Overvalued Tech Firms

European Central Bank Governing Council member Fabio Panetta has sounded the alarm on potentially overvalued technology companies, citing overly optimistic AI pricing as a risk factor for market corrections.

In a speech on Monday, September 21, 2026, Panetta warned that current asset prices reflect 'optimistic expectations about the future profitability of AI.'

While he acknowledged that these valuations can help technology firms raise capital and sustain investment, he also emphasized their vulnerability to sharp corrections when expectations are not met.