Ray Dalio says AI is in ‘the early stages of a bubble,’ so watch out for 2026

Group 1 - The artificial intelligence boom is perceived to be in the early stages of a bubble, with concerns about a potential shift in market dynamics by 2026 [1][3] - U.S. stocks, particularly the S&P 500, experienced significant gains in 2022, rising 16%, largely driven by optimism surrounding AI technologies [2] - A study from MIT indicated that 95% of generative AI pilots at companies have not yet turned a profit, raising questions about the sustainability of current tech valuations [4] Group 2 - Ray Dalio likened the current AI bubble to the euphoria preceding the 1929 stock market crash and the 2000 dot-com bubble, estimating it to be at "about 80%" of that level [5] - Ongoing uncertainties regarding the Federal Reserve's monetary policy, especially with a potential change in leadership, could influence market conditions and the AI bubble in 2026 [6] - Gold emerged as the best-performing major market asset in 2025, outperforming the S&P index by 47%, highlighting its role as a safe-haven investment amid potential market corrections [7]