Michael Novogratz calls AI the biggest bubble of our lifetime, says buy anyway
The Galaxy Digital CEO told the Greenwich Economic Forum that AI is a bubble, but he argued the conditions for a burst are not yet in place
Michael Novogratz thinks artificial intelligence is the biggest bubble of our lifetime. He also thinks you should own it.
The Galaxy Digital CEO made both points at the Greenwich Economic Forum on October 6, 2026. Most people who spot a bubble head for the exits. Novogratz is holding the door open and waving people inside.
A bubble, but not a popping one
Novogratz described AI as the largest speculative boom he has seen in his lifetime. He then told investors to invest in AI stocks aggressively. That pairing is the core of his argument.
His reasoning was not that bubbles are harmless. It was about timing. In his view, the conditions that typically precede a bubble bursting are not yet present.
“Biggest bubble of our lifetime.”
The S&P 500 hit a record high on October 6, 2026, with AI-linked stocks doing much of the lifting.
Nvidia led that charge. The chipmaker’s market capitalization approached $6 trillion that day.
The valuation case
The most interesting part of Novogratz’s pitch was about price, not hype. He pointed out that AI stocks look attractive on a price-to-earnings basis.
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He acknowledged pressure from interest rates, which tend to weigh on growth stocks by making future earnings worth less in today’s money. Even so, he said he remains bullish on the broader market.
Why Galaxy has skin in this game
Novogratz is not commenting from the sidelines. Galaxy Digital, best known as a crypto-focused financial firm, has moved into AI data-center infrastructure.
Part of that shift involves converting former Bitcoin-mining sites in Texas into facilities for AI workloads.
A familiar playbook from Novogratz
This is not the first time Novogratz has embraced an emerging technology while acknowledging its speculative froth. In late 2017, he referred to the cryptocurrency market as potentially the biggest bubble of all time, while maintaining optimism about its underlying technology. His remarks in October 2026 regarding AI echo this sentiment.
What this means for investors
The most practical takeaway is that Novogratz is making a timing call, not a valuation call alone. He believes the boom has room to run because the typical warning signs of a collapse are not yet flashing.
Concentration is a risk worth tracking. When a single company like Nvidia approaches a $6 trillion valuation and AI stocks drive the S&P 500 to records, the broader index becomes more dependent on one theme.
For the crypto sector, the story worth following is Galaxy’s infrastructure pivot. Converting Bitcoin-mining sites in Texas to AI data centers ties the firm’s fortunes more closely to AI demand.