BUBBLES POP: Chief investor urges people to quit chasing AI, says it’s not a matter of if but when it ‘breaks’ — how to prepare.

“We’re in the crazy stage,” Smead told Business Insider, comparing today’s market to the eve of the dot-com crash in late 1999. (1)

He points to valuations he feels are untethered from reality.

Since early 2023, Nvidia’s value has jumped twelvefold to $4.4 trillion, while Palantir has skyrocketed twenty-eight-fold to $420 billion.

Meanwhile, AI firm CoreWeave’s valuation just hit $60-billion on just $1.2 billion in quarterly revenue.

“We’re bumping up against history real hard now,” he warns, especially worried about many Americans have household wealth tied to Big Tech.

Palantir’s P/E is closing in on 600.