The Bank of England's Governor Andrew Bailey has raised eyebrows with his latest take on artificial intelligence stocks. Speaking candidly, he suggested that current AI valuations are looking uncomfortably stretched when you factor in what's actually being priced into future expectations.

Bailey's not alone in this skepticism. While AI hype has driven massive capital inflows across tech sectors, central bankers are starting to question whether these forward-looking multiples can hold up. The concern? Markets might be betting too heavily on AI's transformative potential before the actual revenue streams and productivity gains materialize at scale.

This matters beyond traditional equities. When central bank governors start flagging overvaluation risks in major tech narratives, it typically signals broader concerns about asset bubbles and liquidity conditions. For risk assets across the board—including digital assets—such warnings often precede shifts in monetary policy sentiment or capital rotation.

Whether Bailey's caution proves prescient or premature remains to be seen. But when a major central bank chief calls out stretched valuations publicly, markets tend to listen. The real question: will investors adjust their positioning, or keep riding the AI wave until something breaks?