Jeff Bezos says it is hard to tell whether the AI market is in a bubble, and he is not taking chances with his own retirement savings. In a recent interview, the Amazon founder told Fox News that both good and bad ideas get funded during AI booms, making it difficult for average investors to separate winners from losers. His recommendation: stick with the S&P 500, which already holds major AI players like Apple, Alphabet, Microsoft, and Amazon at reasonable weights.
Bezos is not alone in urging caution. Apollo Global Management chief economist Torsten Slok published research showing that AI spending has boosted revenue and profit margins only for the so-called Magnificent Seven firms. For the other 493 S&P 500 companies, metrics are essentially flat. That raises uncomfortable questions about whether the billions flowing into data centers from companies like Alphabet, Microsoft, and Meta are generating real returns beyond a handful of tech giants.
Key Takeaways
- Jeff Bezos recommends retirees invest in the S&P 500 rather than individual AI stocks due to bubble uncertainty
- Apollo research shows AI benefits only the Magnificent Seven, with flat results for other 493 S&P 500 companies
- Steve Eisman says an AI crash would not be as severe as the 2008 financial crisis
- SpaceX plans 10 gigawatts of computing capacity next year, benefiting Nvidia, SK Hynix, Vertiv, Amphenol, and TSMC
- Morgan Stanley reiterates Overweight on five AI data center stocks with a $65 target for TeraWulf
- FinSight Ventures launches $100 million Physical AI Index Fund targeting $5.7 trillion market by 2031
- Anthropic reported record revenue of $16.3 billion in the first half of 2026 ahead of its IPO
- F1 and the FIA partner with AWS to use AI for faster rules creation and enforcement
- ThinkBit introduces a two-bit framework that preserves reasoning in AI models at much lower inference costs
- Jim Cramer warns investors to be cautious about high debt levels in the AI sector
Jeff Bezos Says AI Bubble Hard to Spot but Recommends S&P 500 for Retirees
Jeff Bezos said it is difficult to tell if the AI market is in a bubble. He told Fox News host Bret Baier that he would advise retirees to buy the S&P 500 instead of individual AI stocks. Bezos noted that both good and bad ideas get funded during AI booms, making it tricky for investors. He believes the S&P 500 is a safer choice because it already includes major AI companies at proper weights.
Jeff Bezos Cautions on AI Bubble and Urges S&P 500 Investment
Jeff Bezos declined to predict whether the AI boom will crash but warned that investors struggle to separate good ideas from bad ones during such periods. In an interview with Bret Baier, he recommended that retirees simply buy the S&P 500. The index already holds major AI companies like Apple, Alphabet, Microsoft, and Amazon. Bezos noted that while speculation can be risky, the inventions themselves remain valuable for society.
Apollo Economist Says AI Benefits Only the Magnificent Seven Tech Firms
Apollo Global Management chief economist Torsten Slok published research showing AI has delivered zero financial payoff to corporate America outside of tech. Revenue per worker and profit margins are rising for the Magnificent Seven but flat for the other 493 S&P 500 companies. Major firms like Alphabet, Microsoft, and Meta are investing hundreds of billions in AI data centers. Slok's findings raise concerns that highly valued tech stocks could be overpriced if AI spending slows.
Steve Eisman Says AI Crash Would Not Be as Severe as 2008 Crisis
Steve Eisman, famous for predicting the 2008 housing crash, said the current AI boom does not pose the same systemic risks. He compared a potential AI downturn to a major automaker like General Motors going bankrupt rather than banks collapsing. Eisman explained that 2008 was devastating because major investment banks failed and the financial system nearly collapsed. He advised long-term investors to consider S&P 500 ETFs if they worry about tech stock volatility.
SpaceX AI Infrastructure Build Boosts These Five Stock Suppliers
SpaceX plans to increase its computing capacity by about 10 gigawatts next year, with a goal of 20 gigawatts long term. This massive spending will benefit Nvidia, SK Hynix, Vertiv, Amphenol, and Taiwan Semiconductor Manufacturing. Nvidia and SK Hynix will supply chips and high-bandwidth memory while Amphenol provides interconnect solutions. Vertiv stands to gain because SpaceX identified cooling and power management as major bottlenecks. TSMC will also see increased spending in 2027.
How to remove unwanted AI features from your phone
Google AI Overviews can be avoided by adding -AI to your search or using the Web filter in Google results. DuckDuckGo offers a No-AI search option at noai.duckduckgo.com for those who want AI-free searches. iPhone users can change their default search engine, hide Siri app suggestions, turn off Siri AI, or stop Apple Intelligence from summarizing notifications. Samsung Galaxy users can disable Galaxy AI features like Note assist through Settings. Google Pixel users can turn off Magic Cue suggestions on supported Pixel 10 models.
Morgan Stanley keeps Overweight on five AI data center stocks
Morgan Stanley reiterated Overweight ratings on five AI data center stocks, with a $65 target for TeraWulf that is 441% above its October 20 close of $12.01. The bank argues these operators are landlords with 15 to 20 year leases, not neoclouds with short term deals. They build shells at $9 to $14 per watt versus $30 to $50 per watt and take no chip risk. Morgan Stanley values TeraWulf contracts at a 9% equity discount rate and a 7% terminal cap rate. Lease rates have climbed from about $1.80 per critical IT watt in summer 2025 to $2.37 for TeraWulf in July 2026.
ThinkBit: A two-bit framework that preserves reasoning in AI models
ThinkBit is a scalar two-bit framework designed to preserve reasoning in language models while making inference much cheaper. It stores model weights as integer codewords times a shared bfloat16 scale, using a sensitivity metric to assign different bitwidths to layers. A layerwise Gumbel-softmax-based scalar quantization algorithm searches for optimal codewords, followed by recalibration and quantization-aware training. On Qwen3-1.7B at matched size, the recalibrated checkpoint scores 46.7 on MATH-500 compared to 30.0 for EfficientQAT. The 0.52 GB model is smaller than every published 2-bit GGUF yet more accurate, and the framework scales up to 14B models.
The AI bubble has burst in China, could the U.S. be next?
AI has seen massive growth with Anthropic filing its IPO, SpaceX securing $40 billion in chip financing, and Meta seeking $95 billion for its AI buildout, totaling about $235 billion in one day. Wall Street is funding the AI buildout in real time, but the article notes the bubble has already burst in China. The piece raises the question of whether the United States could be next as major deals and valuations continue to surge across the AI industry.
FinSight Ventures launches $100 million Physical AI Index Fund
FinSight Ventures launched a $100 million fund targeting 10 to 12 companies across four Physical AI segments including Robotics, AI for Science, Foundation Layer, and Hardware and Infrastructure. The fund targets an aggregate capitalization of $5.7 trillion by 2031, driven by a structural labor shortage. UN projections show the working-age population in East Asia, Europe, and the U.S. will contract by 342 million people by 2050. Physical AI's share of global venture financing grew from 0.8% in 2016 to 12% in 2025, with investment rising from $2.0 billion to $64.7 billion. The fund cites NVIDIA Cosmos world models and VLA models as key enabling technologies.
Stocks Rise on AI News as Cramer Warns of Risks
Shares for Micron, SanDisk, and neocloud companies like Nebius and CoreWeave increased after SK Hynix reported strong third-quarter earnings. The rally was also fueled by news that Anthropic filed for an initial public offering, showing record revenue of $16.3 billion in the first half of 2026. Investors are optimistic about spending on AI infrastructure, but Jim Cramer from CNBC advised caution due to high debt levels in the sector. Traders will now watch the Federal Reserve meeting and upcoming reports from Microsoft and Alphabet for more market signals.
F1 and FIA Partner with AWS to Use AI for Rules
Formula 1 and its governing body, the FIA, have partnered with Amazon Web Services to use artificial intelligence for creating and enforcing racing rules. This collaboration aims to speed up the design process by running thousands of computer simulations in hours instead of months. The new tools will help regulators close loopholes that teams try to use to gain speed advantages while staying within legal limits. All eleven F1 teams have already signed deals with AI firms to improve their own operations and car designs.
Sources
- ‘Hard to Know If We’re in an AI Bubble’ Jeff Bezos Says, But Should a Retiree Buy AI Stocks?
- ‘Hard to Know If We’re in an AI Bubble’ Jeff Bezos Says, But Should a Retiree Buy AI Stocks? — ‘I Would Usually Tell a Retiree to Buy the S&P 500’
- Is AI Overhyped? Apollo Economist Sees "Zero Financial Payoff" Beyond Tech Companies
- Would An AI Stock Crash Be as Bad as 2008? Here's What "Big Short" Investor Steve Eisman Says.
- 5 Stocks Poised to Win Big as SpaceX Ramps Up AI Infrastructure
- How to get rid of unwanted AI on your phone
- Morgan Stanley reiterates Overweight on five AI data center stocks, with 441% TeraWulf upside
- ThinkBit: Search Codewords, Recalibrate Scales, Select by Reasoning
- Tech: The AI Bubble Has Already Burst In China. Could The U.S. Be Next?
- FinSight Ventures Launches $100 Million Physical AI Index Fund
- MU, SNDK, Neocloud Stocks Extend Gains On Anthropic Boost, SK Hynix Q3 Stunner; Jim Cramer Urges Caution
- Why F1’s rule-makers are turning to AI to keep up with the teams and close loopholes
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