This Red Flag Signals AI Is in a Bubble

Artificial intelligence (AI) is the biggest growth story in modern history.

It will reshape how businesses operate, how economies grow, and how wealth is created.

Decades from now, historians will look back at this moment the way we look at the Industrial Revolution or the birth of the internet.

Morgan Stanley projects that the widespread deployment of AI technology could create as much as $16 trillion in new stock market wealth.

To put that number into perspective, $16 trillion would be enough to send a $120,000 check to every household in America.

Elon Musk believes AI automation and robotics could ultimately 10x the size of the global economy, creating a $1 quadrillion opportunity.

Friends, I’ve spent decades studying markets. I never imagined I’d say “quadrillion” about an investing opportunity with a straight face.

Yet here we are…

Some estimates forecast AI hyperscalers like Amazon, Microsoft, Alphabet, and Meta to spend up to $5 trillion over the coming years to build data centers and infrastructure.

Here’s what the numbers don’t tell you…

These companies are massively overinvesting in AI. Even Google CEO Sundar Pichai said this boom has “elements of irrationality.”

That doesn’t mean AI isn’t real. It doesn’t mean the technology won’t change the world. It does mean there’s a big risk that overhyped AI stocks are in a bubble.

Now, you might squeeze out another 10%, 20%, 30% – maybe even 50% – from these hot AI names before the bubble finally pops.

But when the correction begins – and it will – those gains won’t just disappear… The losses could be so severe, they permanently derail your retirement plans.