# BOJ Uchida Warns AI Boom Could Trigger Market Correction

> Bank of Japan deputy governor warns AI-driven market gains risk correction if profits don't materialize.
- Title: BOJ Uchida Warns AI Boom Could Trigger Market Correction
- Summary: Bank of Japan deputy governor warns AI-driven market gains risk correction if profits don't materialize. Bank of Japan deputy governor Shinichi Uchida…
- Keywords: bank of japan, shinichi uchida, ai boom, market correction, s&p 500, boj, artificial intelligence, financial markets, central bank, interest rates, money, business
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/news/global-market-bojs-uchida-warns-ai-boom-could-trigger-market-correction/articleshow/134687396.cms
- Author: Anupam Nagar
- Published: 2026-10-05T05:48:00+00:00
- Read time: 1 min
- Topics: bank of japan, shinichi uchida, ai boom, market correction, s&p 500, boj, artificial intelligence, financial markets, central bank, interest rates, money, business
## BOJ Deputy Governor Uchida
Bank of Japan deputy governor Shinichi Uchida warned the global AI boom may ease financial conditions by boosting demand and lifting asset prices.

> the rapid adoption of ai had acted as a major positive demand shock, supporting economic activity and putting upward pressure on prices
## AI-Driven Market Gains
AI-related stock prices rose sharply, with Synopsys up 18.02% and Hewlett Packard up 12.76% on Monday.

> synopsys 489.90 (18.02%)
## Market Correction Risk
Uchida warned markets could face a correction if expected AI profits fail to materialize, creating a mismatch between asset valuations and actual returns.

> markets could face a correction if expected ai-related profits fail to materialize
## Bond Market Impact
Heavy bond issuance by AI-related companies pushed up long-term interest rates despite rising stock prices.

> heavy bond issuance by ai-related companies has pushed up long-term interest rates
## BOJ's Assessment
The Bank of Japan will continue assessing AI's impact on inflation and interest rates to determine if further monetary tightening is needed.

> the boj will continue to assess economic and financial data to develop a clearer view of ai's overall impact
## Market Correction Risk
Uchida cautioned that AI-driven market gains could trigger a correction if profits from ai investments do not materialize.

> markets could face a correction if expected ai-related profits fail to materialize
## Key takeaway

Bank of Japan deputy governor Shinichi Uchida cautioned that AI-related market gains could lead to a correction if expected profits fail to materialize.