AI stocks have been going through a troubling period in the past few weeks. Some have cratered, whereas others are plateauing as Wall Street believes that the entire sector is now in a bubble.
Bridgewater Associates founder, billionaire Ray Dalio, shares the same view. However, there's a distinction. According to Dalio, the market is in bubble territory, but he reckons that we're at "80%" of the euphoria seen in 1929 and in 2000. He also says that the bubble "needs to be pricked," meaning that the broader market may keep rallying if there's no negative catalyst to cool things down. Fear alone may not end the rally.
