By Jasmine Wu,Deirdre Bosa
Publication Date: 2025-11-22 13:00:00
This week, volatility took hold of the AI trade as bubble fears continued to rise and Nvidia‘s blowout earnings failed to steady the market.
“Unless you’re the most optimistic person on the planet … you know you’re in a bubble, right?” Dan Niles, founder of Niles Investment Management, told CNBC’s Deirdre Bosa. “There is no question you’re in a bubble.”
Industry insiders raise AI bubble alarms
Industry insiders are also beginning to raise the alarm, with Alphabet CEO Sundar Pichai warning of an overrun.
“Given the potential of this technology, the excitement is very rational. It’s also true when we go through these investment cycles, there are moments we overshoot collectively as an industry,” Pichai told the BBC. “I think it’s both rational and there are elements of irrationality through moments like this.”
At a recent internal all-hands meeting, Pichai reiterated a point he’s made previously about the risks of Google not investing aggressively enough, CNBC reported Friday.
“I think it’s always difficult during these moments because the risk of underinvesting is pretty high,” said Pichai, pointing to Google’s cloud business, which just recorded 34% annual revenue growth to more than $15 billion in the quarter. Its backlog reached $155 billion.
“I actually think for how extraordinary the cloud numbers were, those numbers would have been much better if we had more compute,” he said.
Google’s AI momentum
Meanwhile, Google on Thursday surpassed Microsoft in market cap for the…
