“Someone is going to lose a phenomenal amount of money.”
That’s Sam Altman—CEO of OpenAI, the company behind ChatGPT—who’s been warning of a bubble in artificial intelligence (AI).
Mark Zuckerberg says a “collapse” is “definitely a possibility.”
Ben Inker, who oversees asset allocation at the $60 billion fund GMO, says he’s seeing “bubble-like behavior” in the AI space.
The Bank of England has compared current AI stock valuations to the peak of the dot-com bubble.
Chris Reilly here filling in for Stephen today. Nearly everyone seems to agree that AI is in a bubble. Even Stephen Colbert dedicated a segment to it:
Source: The Late Show With Stephen Colbert
Financial media loves calling bubbles. Fortunately, they’re usually wrong.
But the uniformity here is what stands out. From the Bank of England to The Late Show, everyone’s echoing the same thing.
Even my mom brought up AI the other day. She’s not an investor. She’s not tech-savvy. But she asked my sister how to use ChatGPT.
When your mom is asking about it, you know it’s not “early” anymore.
… that AI would require massive, never-before-seen amounts computing power.
You didn’t need to predict which chatbot would win between ChatGPT, Claude, or xAI. You just needed to own the companies that would build the servers, the data centers, and the chips that power AI.
That’s exactly what RiskHedge subscribers have taken advantage of. Longtime readers know we’ve been in Nvidia (NVDA) since 2020 in our flagship Disruption Investor advisory, and that we’ve taken profits twice on the way up.
Subscribers have more than doubled their money in network switch maker Arista Networks (ANET), power equipment maker Vertiv Holdings Co. (VRT), and chipmaker Taiwan Semiconductor (TSM), among many other winners.
That’s the reward for being early... for recognizing a true megatrend before the crowd.
But that was then.
Now? The cat’s out of the bag on AI infrastructure stocks.
One day, we were Googling and clicking a long list of links; the next, we were having conversations with a new machine that could write code, explain quantum mechanics, and draft business plans.
ChatGPT became the fastest-growing app in history, reaching 100 million users faster than TikTok or Instagram.
The adoption of AI has already outpaced the internet, smartphones, and every major technological shift before it.
And OpenAI is now the fastest firm in history to hit a $500 billion valuation:
In these past three years, entire industries have begun to reorganize around AI. Governments have scrambled to regulate it. Investors have poured trillions into anything that sounds remotely related to AI.
It’s been a once-in-a-generation explosion—the kind of adoption curve that rewires the economy.
But it also means we’re no longer early.
Three years ago, buying AI infrastructure stocks was like buying the companies building broadband internet’s backbone in 1996. It didn’t take a genius to see it—you just had to be willing to act before the rest of the world caught on.
Today, everyone has caught on.
Every CEO talks about their “AI strategy.” Every product is “AI-powered.”
That doesn’t make the technology any less revolutionary. But as an investment story, it’s evolved. The easy, obvious phase—when simply investing in the builders was the right move—is over.
When every investor, CEO, and talk show host agrees… that’s when you want to start thinking differently.
If you’re a RiskHedge reader, you’re invited—but registration is required.
Go here to put your name on the list.
I hope you’ve made good money during this phase of the AI boom.
But as Stephen will explain on November 5, we’re in the AI Endgame now.
Sign up here and mark your calendar.
Chris Reilly
Executive Editor, RiskHedge