“Biggest Bubble” Still Has Investors Buying

Stock market chart with green upward arrow and red downward line — Photo: Travis Wolfe / Shutterstock

Calling artificial intelligence the “biggest bubble of our lifetime,” Mike Novogratz still told investors to keep buying.

Story Snapshot

Mike Novogratz said artificial intelligence is a massive bubble but urged investors to stay in the trade.
He argued bubbles end with a dramatic crash and said markets are not at that stage yet.
He claimed artificial intelligence stocks still look cheap based on price-to-earnings ratios.
Recent reports describe heavy spending on chips and data centers that support his view of ongoing momentum.

What Novogratz Said And Why It Matters

Galaxy Digital founder Mike Novogratz told the Greenwich Economic Forum that artificial intelligence is the “biggest bubble of our lifetime.” He did not tell investors to flee. He told them to keep buying. He joked that if you have not invested, you should “stick your head in a bucket of ice water,” underscoring the fear of missing out that drives manias and rallies alike. He framed the moment as early bubble behavior, not the blow-off top that ends a cycle.

Novogratz added that bubbles end with spectacle and sharp declines, and that markets do not look like that today. He also said key artificial intelligence names are still cheap when measured by price-to-earnings ratios, a traditional yardstick for stock prices versus earnings power. That mix—warning about a bubble while urging investors to participate—reflects a common view on Wall Street when powerful themes pull in fresh capital and attention.

How The Money Flow Backs His Thesis

Market coverage shows strong financing demand around artificial intelligence infrastructure. Reports describe large plans to buy advanced chips and build data centers, plus ongoing spending by major cloud firms. Those are consistent with a trade that still has runway, not one in retreat. Heavy spending supports companies that sell the picks and shovels of the boom. That can keep prices elevated even when investors debate long-term profits from end users.

Novogratz also spoke about a winner-take-most path in artificial intelligence. He argued that the company that reaches advanced general systems first could capture huge returns. That mindset helps explain why high interest rates have not stopped spending. Investors fear missing the leader more than they fear near-term costs. That creates a feedback loop: more capital, more capacity, and higher hopes that the winners will justify today’s prices.

What History And Valuations Suggest

Analysts and historians often note that major technologies can be both real and overpriced at the same time. They point to the internet, railways, and past computing waves. The pattern repeats: grand promise, fast capital inflows, narrow leaders, and stretched valuations, followed by shakeouts that still leave lasting gains for society. Research and commentary on this cycle frame artificial intelligence similarly, with debate over how much future utility supports today’s prices.

Galaxy CEO Mike Novogratz: AI is in the “biggest bubble of our lifetime” — but investors should jump in anyway, he says.@galaxyhq @novogratz pic.twitter.com/e3XnopGKQK

— The Crypto Times (@CryptoTimes_io) October 8, 2026

Novogratz’s view fits that frame. He says the boom has bubble traits but is not done. He backs that with a simple claim that earnings still support prices in key names, even after a big run. Critics will ask for detailed models and hard revenue proof, and some reports rely on summaries rather than full transcripts. But his on-record quotes and the ongoing surge in infrastructure spending make his core point clear: the trade still draws money, and he thinks it should.

Why This Resonates With A Frustrated Public

Investors and workers across the spectrum see a system that often serves insiders first. They watch giant firms raise billions for chips while many families face high costs and flat wages. Novogratz’s call to buy a “bubble” captures that tension. The money keeps flowing because the potential prize is so large. That is how many American booms have worked. The risk is that if profits do not show up fast enough, regular investors could be left holding the bag while elites cash fees and bonuses.

What To Watch Next

Watch earnings from leading chipmakers and cloud providers. Look for proof that customers pay for artificial intelligence tools at scale and stick with them. Track data center utilization rates and debt costs tied to new builds. If profits and usage rise with capacity, the rally may have support. If costs outrun cash flow, drawdowns can be swift. Novogratz says we are not at the crash stage yet. The next few quarters will test that call against cold, hard numbers.