Galaxy Digital Founder Calls AI 'Biggest Bubble of Our Lifetime,' Says Investors Should Stay In

Michael Novogratz, founder of Galaxy Digital, said at the Greenwich Economic Forum in Greenwich, Connecticut, on Oct. 7, 2026, that AI is in "the biggest bubble of our lifetime," but investors should still participate. He argued that AI-related stocks still look cheap on a price-to-earnings basis and that headwinds such as rising long-term yields are not enough to end the bull market.

Novogratz noted that AI-related stock gains had pushed the S&P 500 to a record close on Oct. 6, with Nvidia's market value approaching $6 trillion. "Bubbles don't end like this. I know how bubbles end. They end very dramatically, and this is not dramatic enough yet," he said.

He also cited concerns that hyperscalers' AI capital spending is expected to exceed $1 trillion in 2027 and that many tech giants rely on debt to finance their investment plans. Growing doubts about whether these companies can generate enough profits to sustain the AI infrastructure buildout have fueled worries about overheating in AI trades.

Opinions are divided over the consequences of massive capital inflows into AI. Some investors fear that aggressive spending and speculative fervor resemble the late-1990s internet bubble, while others believe tech companies have the financial strength to fund AI data center construction and that AI will ultimately deliver unprecedented productivity gains. Separately, Bridgewater founder Ray Dalio warned at a conference in Singapore on Oct. 7 that AI is in a "classic bubble" that is nearing a breaking point as interest rates rise and investors need to take profits off the table.