Article · Fortune · January 6, 2026
Ray Dalio warns AI is in the early stages of a bubble
The founder of the world’s largest hedge fund said the AI boom is “in the early stages of a bubble” and told investors to watch out in 2026.
- Author
- Tristan Bove · Journalist, Fortune
- On behalf of
Fortune- Quotes
- Ray Dalio · Founder of Bridgewater Associates
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- fortune.com

fortune.com
Ray Dalio warns AI is in the early stages of a bubble
An AI bubble and policy uncertainty could complicate 2026 for investors.
Quotes
„Obviously the AI boom that is now in the early stages of a bubble had a big effect on everything.”What the index did
Nasdaq-100, level on the day of the warning: 25,640 (01/06/2026)
| 1 mo. after the warning | 3 mo. after the warning | 6 mo. after the warning | 12 mo. after the warning | to date | Largest drop within 12 months |
|---|---|---|---|---|---|
| −2.2% | −5.6% | +15.8% | too early | +5.3% | −10.5% |
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Legendary ‘Big Short’ investor Michael Burry issues an ominous warning after the latest stock market rally: ‘Sell.’
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A one-word, since-deleted tweet. Two months later Burry admitted he “was wrong to say sell”, as the Nasdaq-100 had entered a bull market.
Nasdaq-100 since the warning
+123.0%over 3.8 years