There Might Not Be a Spectacular Bursting of an AI Bubble—Here’s What May Happen Instead

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identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.The moment Michael Burry announced his bearish bets on some of the biggest winners of the AI trade, including the likes of Nvidia (NASDAQ:NVDA), it seemed like a bursting of the bubble was inevitable. Of course, even the great Michael Burry of The Big Short fame can't be right all of the time. And while he's raised some intriguing bear points (such as the GPU depreciation schedule and other accounting practices that might be a bit on the aggressive side) about the big tech innovators, which seem to be going all-in on the AI boom, I'm not so sure such finer details matter as much in the grander scheme of things, provided the AI revolution lives up to the high ROI hopes.Undoubtedly, we're going to need to see greater monetization of the technology in the new year. Otherwise, the path may very well be lower for the AI names, especially the ones that have enjoyed triple-digit percentage gains in just over a year. Personally, I don't think an AI bubble bust is the only way the boom has to end. Additionally, I think Burry could make a fortune from his bearish bets on Nvidia and Palantir (NASDAQ:PLTR), without the entire trade going up in smoke.How? Frequent rolling corrections concentrated in the AI stocks might be another way to "correct" moments of excess enthusiasm and pockets of severe overvaluation. Undoubtedly, perhaps the corrections could prove more isolated, punishing names like Palantir, as big-tech stars with more modest valuation multiples proceed higher. Undoubtedly, it seems like Google parent Alphabet (NASDAQ:GOOG) remains an AI trade that may very well be spared from future rolling corrections as they happen.The stock remains quite cheap and might be a place to rotate profits from the massive winners, like Nvidia, for a shot at continued performance. Given the slowed momentum in shares of Nvidia, perhaps the fresh slate of 2026 will offer the means for a new class of leaders, many of whom might be more obvious than you'd think. Undoubtedly, the Magnificent Seven stars (especially Alphabet) stand out as having what it takes to lead the way for the AI trade moving ahead.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,858.47 +12.97 (+0.19%)Dow 3048,382.39 +319.10 (+0.66%)Nasdaq23,235.63 -6.36 (-0.03%)Russell 20002,508.22 +26.32 (+1.06%)VIX14.51 -0.44 (-2.94%)Gold4,329.60 -11.50 (-0.26%)Trending tickersBTC-USD Bitcoin USD 91,141.07 +969.83 (+1.08%)XRP-USD XRP USD 2.09 +0.08 (+3.77%)ETH-USD Ethereum USD 3,133.48 +25.14 (+0.81%)CVX Chevron Corporation 155.90 +3.49 (+2.29%)XOM Exxon Mobil Corporation 122.65 +2.31 (+1.92%)PortfolioSign in to access your portfolioSign inTop gainersFLNC Fluence Energy, Inc. 23.01 +3.23 (+16.33%)SNDK Sandisk Corporation 275.24 +37.86 (+15.95%)SMR NuScale Power Corporation 16.31 +2.14 (+15.10%)BIDU Baidu, Inc. 150.30 +19.64 (+15.03%)ASTS AST SpaceMobile, Inc. 83.47 +10.84 (+14.93%)Top losersPAY Paymentus Holdings, Inc. 28.47 -3.12 (-9.88%)KVYO Klaviyo, Inc. 29.32 -3.15 (-9.70%)LQDA Liquidia Corporation 31.40 -3.09 (-8.96%)APP AppLovin Corporation 618.32 -55.50 (-8.24%)PSNY Polestar Automotive Holding UK PLC 19.81 -1.56 (-7.30%)Most activeONDS Ondas Holdings Inc. 11.02 +1.26 (+12.91%)NVDA NVIDIA Corporation 188.85 +2.35 (+1.26%)PLUG Plug Power Inc. 2.2300 +0.2600 (+13.20%)INTC Intel Corporation 39.38 +2.48 (+6.72%)TSLA Tesla, Inc. 438.07 -11.65 (-2.59%)Top economic eventsEarnings eventsMy earnings eventsEarnings events