Are We In an AI Bubble? Maybe, But There Are Ways to Protect Clients Against It
Key takeaways
- But speakers at the Wealth Management EDGE conference at The Boca Raton Resort in Boca Raton, Fla., think the answer might be a “yes,” though advisors can mitigate the negative impacts for their clients.
- Today, the biggest argument against the idea that AI company valuations might be creating a bubble is that these companies can show earnings growth, said Cameron Dawson, chief investment officer at NewEdge Wealth.
- “Only in a speculative environment could you have the largest IPO ever, ever, ever for a company that has no profit and trades at 80x or 90x sales,” Dawson said. “That is endemic of where we are in the cycle.
Are We In an AI Bubble? Maybe, But There Are Ways to Protect Clients Against It Elaine Misonzhnik Thu, June 11, 2026 at 9:16 PM GMT+7 3 min read You can find original article here Wealth Management. Subscribe to our free daily Wealth Management newsletters.
In the midst of all the excitement about artificial intelligence tools and several of the biggest companies in the space planning to go public, the conversation about whether the market might be in a bubble has been pushed to the sidelines. But speakers at the Wealth Management EDGE conference at The Boca Raton Resort in Boca Raton, Fla., think the answer might be a “yes,” though advisors can mitigate the negative impacts for their clients.
Today, the biggest argument against the idea that AI company valuations might be creating a bubble is that these companies can show earnings growth, said Cameron Dawson, chief investment officer at NewEdge Wealth. What people forget is that companies involved in previous market bubbles also had earnings, Dawson said. When the process of building out infrastructure for an emerging technology is taking place, there will almost always be earnings growth—but there will also inevitably be a certain level of speculation, as there is today, she pointed out.