The Latest “Crisis” Has Arrived
You can’t scroll far without seeing it:
“Is the AI Bubble About to Pop?”
“Experts Warn of an AI Crash.”
“Former Intel CEO Calls AI a Bubble (But Not Yet Ready to Pop).”
It’s the financial media’s latest obsession — and, admittedly, it’s great for clicks.
But if you actually read beyond the first few paragraphs, a funny thing happens: most of these articles quietly admit they don’t really know what’s going to happen.
They hedge with phrases like “could,” “may,” “not likely systemic,” and “some overvaluation.”
In other words: the same caveats we’ve heard in every bull market for the past 50 years.
🗣 “Some AI stocks might be overpriced. Be diversified. Don’t speculate too heavily. Nobody knows for sure.”
— Every “AI bubble” article ever
1️⃣ The Headlines Are Built for Emotion, Not Insight
Here's a very telling tidbit: I asked AI how I could get a wider audience for my blog posts, to help more people. It said "use less logic and facts, more urgency and emotion."
"We're onto you, internet."
Let’s be honest — “Diversified investors should stay the course” doesn’t drive traffic.
“AI Bubble About to Burst?” sure does.
Take a few real examples:
- “Why Experts Are Warning the AI Boom Could Be a Bubble” (Bloomberg)
- “AI Investment Boom May Lead to Bust — but Not a Crisis” (Reuters)
- “Former Intel CEO Pat Gelsinger Says AI Is a Bubble That Won’t Pop for Several Years” (Business Insider)
They sound ominous — but scroll down a few paragraphs and you’ll find the usual wisdom about diversification, patience, and not speculating too heavily.
That’s not fear. That’s Investing 101.
2️⃣ What the Fine Print Actually Says
After a few graphs and expert quotes, the pattern emerges:
- A lot of the AI investment is being made by profitable, well-run companies. This isn’t some newbie starting an AI business in the garage.
- Not all AI companies will succeed. Some will go under, just like dot-com startups did in 2000.
- This isn’t likely to cause a crisis. The IMF has noted that AI investments aren’t heavily leveraged.
- Diversified investors shouldn’t try to time this. Always tucked in near the end.
- We could be wrong. The ultimate insurance clause.
It’s basically a market weather forecast that reads:
“There’s a 50% chance of rain tomorrow. Or maybe not. Carry an umbrella.”
3️⃣ Déjà Vu: The Dot-Com Echo
If you lived through the late ’90s, this feels familiar.
Investors poured billions into unprofitable internet companies. When the bubble burst, even strong businesses got crushed.
Amazon's share price dropped by over 90%
But investors who kept contributing to their 401(k)s through that period — buying shares on sale — built enormous long-term wealth.
💬 “The lesson wasn’t to avoid technology. It was to avoid speculation.”
The same logic applies today. Some AI startups will vanish. Others will become tomorrow’s Amazons and Microsofts.
The trick isn’t predicting which — it’s staying invested while the noise plays out.
4️⃣ Financial Journalism’s Irony
Financial journalism doesn’t exist to make you money.
It exists to make them money — through your attention.
That’s why the formula rarely changes:
- Step 1: Create alarm (“AI bubble may burst soon!”)
- Step 2: Add a disclaimer (“But we might be wrong.”)
And there you have it — a clickable story that nobody can fault later.
Meanwhile, steady investors quietly keep compounding wealth by doing the boring, rational thing.
5️⃣ Why This “Bubble” Talk Misses the Bigger Picture
AI isn’t a fringe fad anymore — it’s being integrated into nearly every major business. Hey, even this article was edited by AI! (Rachel wrote that, not a robot)
Yes, there’s hype. Yes, some stocks are expensive.
But diversified investors own broad markets, profitable companies, and long-term innovators — not just startups with fancy demos.
A few truths worth remembering:
✅ The market can correct without collapsing.
A “pop” may just mean prices normalizing.
✅ Recency bias exaggerates risk.
We equate every wobble with 2008 or 2000 — very different situations.
✅ Volatility ≠ danger.
It’s simply the price of long-term growth.
💡 “You can’t predict, but you can prepare.” — Howard Marks
6️⃣ A Better Headline
If financial media were designed to calm investors, not excite them, you’d see something like this:
“AI valuations are high in spots, but diversified investors should stay the course.”
Not thrilling. But that’s how real wealth is built.
In practice:
- Keep contributing to your 401(k) or retirement plan.
- Own quality, profitable companies.
- Rebalance methodically — don’t time the market.
- Use corrections as opportunities, not warnings.
Or, put more simply: Don’t let headlines rent space in your portfolio.
🧭 The Bottom Line
The next time you see “AI bubble” splashed across your feed, remember:
The authors will probably end by saying “we could be wrong.”
Meanwhile, diversified, disciplined investors don’t have to be right about timing — just consistent about behavior.
If history is any guide, this cycle of fear and hype will fade, and those who stayed invested will be glad they did.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Western Wealth Management LLC , a registered investment advisor. Western Wealth Management LLC and Kennebec Wealth Management LLC are separate entities from LPL Financial.