Nvidia’s explosive earnings have reignited a full-blown AI stock rally, but billionaire investor Ray Dalio says the euphoria is dangerously misplaced, warning the market is now “in that territory of a bubble” and primed for disappointment.

In a sharp warning on CNBC’s Squawk Box, Bridgewater founder Ray Dalio said investors are ignoring the warning signs as artificial intelligence spending pushes markets into extreme territory. Advertisement

“Don’t sell just because there’s a bubble,” Dalio cautioned. “But if you look at the correlations with the next 10 years’ returns, when you are in that territory, you get very low returns.” He stressed that bubbles do not burst on their own and said a market trigger has not yet emerged. Still, he flagged wealth taxes — not interest rates — as a loom

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