Business · Markets · 1 week ago
Howard Marks says it is too early to call AI stocks a bubble
Oaktree co-chair Howard Marks says it is too early to call AI stocks a bubble.
The debate concerns US markets, where investors have raised concerns about the high valuations of companies linked to artificial intelligence.
Unlike during the 2000 tech bubble, the S&P 500 and Nasdaq 100’s forward price-to-earnings ratios have fallen this year as earnings growth expectations have strengthened.
But heavy borrowing, companies financing one another’s AI investments and gains concentrated in a few large tech firms remain concerns.
Nvidia, Apple and Microsoft together make up about 21% of the S&P 500, while the Shiller price-to-earnings ratio is about 41, near its 1999 peak of 44.
Marks says a bubble is marked by extreme optimism, excessive risk-taking and investors ignoring danger.
He argues that widespread discussion of bubble risks suggests investors are alert, which could limit a bubble if one is forming.
Oaktree Capital Management co-chair Howard Marks says it is too early to conclude that artificial intelligence investments have created a stock-market bubble.
Some investors, including Ray Dalio and Michael Novogratz, have warned about excessive valuations.
The S&P 500 and Nasdaq 100 forward price-to-earnings ratios have fallen this year amid expectations of strong earnings growth.
Concerns include high debt, companies supporting one another’s AI investments and market gains concentrated in a few large technology companies.
Marks says widespread discussion of bubble risks suggests investors are alert to them and could limit a bubble’s scale.
- Who
- Howard Marks, co-chair of Oaktree Capital Management.
- What
- He says it is too early to conclude that AI investments have created a stock-market bubble.
- When
- The article was published on October 19, 2026.
- Where
- Not stated
- Why
- Marks says investors are discussing the risks, which could mean they are not ignoring the dangers.
Ray Dalio and Michael Novogratz
Howard Marks
Market valuations
Ray Dalio and Michael Novogratz
Dalio and Novogratz have drawn attention to excessive valuations.
Howard Marks
Marks says a bubble has not been conclusively established.
The forward price-to-earnings ratios of the S&P 500 and Nasdaq 100 fell amid expectations of strong earnings growth.
Bloomberg HT reported Marks’s view that it was too early to conclude that AI investments had created a bubble.
- S&P 500 share
- Nvidia, Apple and Microsoft account for about 21% of the index.
- Shiller price-to-earnings ratio
- About 41, close to the 44 peak seen in 1999.
- Forward price-to-earnings ratios
- The S&P 500 and Nasdaq 100 ratios fell this year.
- Publication date
- October 19, 2026
What people are saying
If enough investors talk cautiously about a possible bubble, the bubble, even if it has formed, may be more limited.