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What the AI ‘Bubble’ Means for Fashion

Concerns about the scale and concentration of AI investment in the key US market have reached a boiling point. A correction could have big consequences for brands this holiday season.

Concerns about the scale and concentration of AI investment in the key US market have reached a boil. — Concerns about the scale and concentration of AI investment in the key US market have reached a boiling point. (Getty Images)

By

Robert Williams

21 November 2025

BoF PROFESSIONAL

Chipmaker Nvidia’s earnings aren’t normally the biggest story in fashion. But this week, concerns about an AI bubble reached a boiling point — with big implications for the key US market, where holiday sales are forecast to top $1 trillion for the first time this year, according to the National Retail Federation.

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Further Reading

What Happens for Luxury If AI Goes Bust?

Investors are worried about the scale and concentration of US’ AI investment ahead of Nvidia’s earnings Wednesday night. A correction would have big consequences for high-end brands. Plus: Kering’s leaked strategy memo, Azzedine Alaïa’s Dior archive, highlights from BoF VOICES.

About the author

Robert Williams

Robert Williams

Robert Williams is Luxury Editor at The Business of Fashion. He is based in Paris and drives BoF’s coverage of the dynamic luxury fashion sector.

In This Article

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