Wall Street veteran Ken Fisher says the loudest warnings about an AI bubble may actually signal the opposite, saying that fear — not euphoria — still dominates the market.
In a new commentary, the founder of Fisher Investments, which manages $362 billion in assets, highlights that no one talks about a bubble when there’s one, as investors are gripped by market euphoria.
“A real bubble sees no fear because the world has now changed in some whole new way that’s gonna make this a big, enduring, wonderful thing. It is the epitome of having climbed the wall of worry that bull markets legendarily climb fully into extensive euphoria.”
Fisher uses the dot-com era as an example of a real bubble, noting that companies back then were being fueled by speculation, not profits.
“And you’ll remember that very clearly if you were around, paid attention during the so-called internet bubble. It was a bubble. There were thousands of companies created out of whole cloth by investment banking with the purpose of putting entrepreneurs together with capital, with nothing else behind them or little else behind them.”
Fisher says today’s AI landscape is fundamentally different, with established players bankrolling the next wave of computing rather than speculative shells.
“The players that are spending most of the money on AI are big global tech or tech-like firms. They’re making a lot of money, unlike in a normal bubble where you have lots of speculative stuff that isn’t making money.”
He also underscores that competition, losses and fear are natural in early breakthrough cycles, not definitive bubble markers.
“There will be a lot of money lost on it. Having a lot of money lost on something doesn’t make it a bubble; it makes it competitive.”
Fisher closes by stating the market has not hit the psychological peak typical of major tops.
“A singular category being a fad doesn’t make a bubble. So with that, I would say AI at this point, for sure, is not a bubble.”
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