Key Takeaways
- • Michael Novogratz, CEO of Galaxy Digital, described artificial intelligence as the "biggest bubble of our lifetime" at a conference in early October 2026, and said investors should still buy into the trade.
- • Novogratz joins a growing group of prominent investors warning of an AI bubble, including billionaire Ray Dalio and analysts at Bank of America Corp.
- • The debate among institutional investors has shifted from whether AI stocks are in bubble territory to whether to ride the momentum or exit.
- • Novogratz argued that the conditions for a bubble to burst are not yet in place, according to a separate report of his remarks at the Greenwich Economic Forum.
Summary
Michael Novogratz, chief executive of Galaxy Digital, says the speculative frenzy in technology stocks will continue to build, even as he characterizes artificial intelligence as the "biggest bubble of our lifetime." Speaking at a conference during the week of the report, Novogratz told attendees that investors should participate in the AI trade rather than step aside, according to Bloomberg.
Novogratz is part of a widening group of high-profile investors cautioning that AI valuations have reached bubble territory. Billionaire investor Ray Dalio and analysts at Bank of America Corp. have made similar arguments, and the discussion among market participants has moved beyond whether a bubble exists. The current debate centers on whether investors should ride the rally or reduce exposure.
Novogratz's position is more nuanced than a simple bubble warning. According to coverage of his remarks at the Greenwich Economic Forum, he holds that AI is in a bubble but that the conditions for it to burst are not yet present. He has also said that calling the top of a bubble is "the hardest thing to do," and that markets are currently absorbing large volumes of equity and credit supply.
For allocators, the key tension is between the perceived momentum in AI-linked equities and the risk of a sharp reversal. Novogratz's stance suggests that at least some prominent managers see continued upside in the near term, even as they acknowledge elevated valuation risk.
Novogratz is part of a widening group of high-profile investors cautioning that AI valuations have reached bubble territory. Billionaire investor Ray Dalio and analysts at Bank of America Corp. have made similar arguments, and the discussion among market participants has moved beyond whether a bubble exists. The current debate centers on whether investors should ride the rally or reduce exposure.
Novogratz's position is more nuanced than a simple bubble warning. According to coverage of his remarks at the Greenwich Economic Forum, he holds that AI is in a bubble but that the conditions for it to burst are not yet present. He has also said that calling the top of a bubble is "the hardest thing to do," and that markets are currently absorbing large volumes of equity and credit supply.
For allocators, the key tension is between the perceived momentum in AI-linked equities and the risk of a sharp reversal. Novogratz's stance suggests that at least some prominent managers see continued upside in the near term, even as they acknowledge elevated valuation risk.
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