“This is something which we have also not seen, or have not seen for a long time, this kind of price earnings, price to forward earnings ratios,” the Croatian official said in the ECB podcast Euro Matters published Tuesday. “They might in the end, end up being justified, but they might not.”

He warned that “the exposure is large and increasing,” adding that “we have to be very careful, monitor that because with such large exposure, so many investments going there, it creates definitely a risk for the repricing of the equity markets.”

The remarks add to a growing chorus of central bankers, supervisors and investors arguing that leading AI firms might be overvalued and a sudden drop in these values could trigger a broader global market correction. On Monday, ECB president Christine Lagarde also said that asset valuations in the AI sector are very high and a correction is “entirely possible”.

The comments also come at a time when AI developers including Anthropic PBC and OpenAI are clashing with US President Donald Trump’s administration over their calls for an industrywide slowdown in AI development, a proposal that has already triggered a selloff across technology stocks and has brought into question the resilience of a global data centre boom.

In the ECB podcast, Vujcic also listed geopolitical risks, which “can rapidly change the prices, the market attitudes,” and fiscal policy as potential dangers to the financial system as some countries have an “unsustainable fiscal positions in the long run”. 

“And we have learned in the past when something is unsustainable, it’s unsustainable,” Vujcic said, adding that it’s better to address these problems sooner rather than later. 

“This is something that we have to also monitor very closely because it’s also possible to see the repricing in those markets, which can be relatively rapid,” Vujcic said.

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