Aswath Damodaran, a finance professor at New York University, has raised alarms about Wall Street's complacency regarding the risks associated with a potential conflict over Taiwan and the ongoing AI investment boom. In a recent podcast, he stated that investors are significantly underestimating the geopolitical risks posed by China, particularly as military assessments suggest Beijing could be ready to act on Taiwan by 2029. Damodaran argued that if the market genuinely anticipated such a conflict, investors would be fleeing risk assets, indicating a dangerous level of complacency. He warned that a war could have immediate and widespread repercussions on global markets and supply chains, especially those reliant on AI and semiconductor production. Furthermore, he expressed concerns that the current AI investment surge could lead to a correction far more severe than the dot-com bubble burst, affecting a broader range of sectors and resulting in a prolonged economic downturn. For now, he considers the threat of war as the most pressing concern for the markets.