🏦 AI Bubble Tracker

Signal Heat Map — all-time (16 signals)

BIS (Bank for International Settlements)
0all-time
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AI boom scale and speed warrant caution; capex outpacing cash flow; opaque circular financing Watching: new BIS publication, AI capex financing, circular financing, credit spreads widening Quote: “Should the returns to AI disappoint, a pullback in investment could turn today's capital expenditure boom into a bust.”
IMF (International Monetary Fund)
0all-time
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Stretched equity valuations; 'disorderly correction' risk has risen Watching: new IMF WEO chapter, spillover report, disorderly correction language Quote: “Stretched market valuations had increased the probability of a disorderly correction.”
Bank of England FPC
0all-time
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Sharp market correction if AI excitement fades or adoption disappoints Watching: FPC statement, Financial Stability Report, AI capability disappointment Quote: “A sharp market correction might materialise should artificial intelligence excitement diminish.”
Banque de France
0all-time
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Concentration of money in and between AI companies is a risk Watching: BdF financial stability report, AI concentration Quote: “Concentration of money in and between AI companies.”
Michael Burry (Scion / Cassandra Unchained)
6all-time
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  • 2026-10-12 · Burry: 2027 puts, base case moved up
    Per Oct 4 Cryptobriefing, Burry swapped short positions for put options on Micron and Nebius expiring in 2027, citing debt-fueled AI spending. Earlier Aug 13 po…
  • 2026-10-12 · Burry Oct 11: 'AI Cloud Oligopoly' + 'Consolidating a Big Short' mash-up post
    Oct 11, 2026 Substack post: 'Short Thoughts: The AI Cloud Oligopoly, Stages Of Grief & A Flashing Bear Market Indicator; Other People's Money, Market Breadth & …
AI bubble pops in 2027; hyperscalers overstate profits by extending server/GPU useful lives Watching: new Substack post, depreciation schedule change, GPU write-down, capex cut Quote: “I'm more confident than ever before. The bubble in AI may burst sooner than later.”
Jeremy Grantham (GMO)
6all-time
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  • 2026-10-12 · GMO 3Q 2026 letter: supply, not demand, breaks the AI bubble
    Inker/Pease argue each 1% rise in equity supply = 4% market-value drop over 12 months. Anthropic + OpenAI IPOs alone = ~5% of US investable market cap. Expects …
  • 2026-10-12 · Anthropic demand softening: Meta cut Claude use 60k→30k, Microsoft cut $1B plan by 1/3+
    Big Technology Podcast (Oct 12, 2026) and The Information: Anthropic's two largest enterprise customers are pulling back. Meta's Claude Code users fell from ~60…
We are in a US stock market and AI bubble; a major correction will eventually follow Watching: new GMO letter, speculative stocks collapsing, quality outperformance Quote: “We are in a U.S. stock market and AI bubble, and that at some stage in the future, most investors will be nursing very large losses.”
Ray Dalio
6all-time
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  • 2026-10-12 · Dalio Oct 7 (Forbes Global CEO): AI 'classic bubble' nearing burst point
    Dalio at the Forbes Global CEO Conference told global executives that AI looks like a classic bubble nearing its bursting point because rising interest rates ar…
  • 2026-10-12 · Dalio Oct 6 (Bloomberg TV): investors must convert wealth into cash
    Per Cryptobriefing Oct 6, Dalio told Bloomberg Television the AI market 'looks like a bubble getting close to its burst point.' Cited rising interest rates and …
Bubble signals at ~80% of 1929 and 2000 extremes; pop needs a trigger (long rates, mega-IPOs) Watching: rising long rates, SpaceX IPO, Anthropic IPO, OpenAI IPO, Dalio new public statement Quote: “Classic signs that we're in [a bubble]. Wealth is not the same as money.”
JPMorgan Cembalest (Eye on the Market)
2all-time
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  • 2026-10-12 · Cembalest Oct 8 'Califoreboding': clients carry 'sense of foreboding' on AI concentration + debt
    JPM Asset Management Eye on the Market #1 (Oct 8, 2026), titled 'Califoreboding': California client meetings surfaced shared concerns about Federal debt traject…
42 AI companies drove 65-75% of S&P500 earnings since 2022; concentration risk; possible Metaverse moment Watching: capex guidance cut, earnings concentration narrows, hyperscaler underperformance continues Quote: “A broader group of 42 AI related companies has generated 65%-75% of S&P 500 earnings, profits and capital spending since ChatGPT's launch in November 2022.”
JPMorgan Hunter (Technical Strategy)
0all-time
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SOX +87% YTD while Microsoft -18% = same divergence as 1999-2000 Watching: SOX index, MSFT, META, AMZN, GOOGL price action, SOX vs Mag-7 divergence Quote: “The growing divergence that exists now and the outright negative hyperscalers price performance are reminiscent of the 1999-2000 dynamic.”
Goldman Sachs
5all-time
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  • 2026-10-12 · GS (Oct 8): hyperscaler AI capex creates $230B/yr revenue gap
    Cryptobriefing summary of late-Sep GS research: $800B 2026 AI infra spend on big-five hyperscalers vs ~$300B break-even revenue need → ~$230B annual shortfall. …
  • 2026-10-12 · GS + MS (Oct 5): aggregate hyperscaler gross leverage 0.9x → 1.8x in 6 months
    Goldman estimates $489B of AI-related debt issued in 2026 YTD, above its 2025 forecast of $322B. MS projects ~$570B AI-related debt for full-year 2026 and >$1T …
AI now propping up S&P earnings growth; fragile dependency on hyperscaler capex Watching: S&P 500 earnings, hyperscaler capex, tech concentration Quote: “AI spending is propping up S&P 500 earnings growth, but that same statistic reveals a fragile dependency on a handful of buyers.”
Morgan Stanley
0all-time
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AI capex rising $800B (2026) → $1.1T (2027); cycle still expanding; shift from infra to software Watching: AI capex revisions, software capex, hyperscaler spending guidance Quote: “Roughly $800 billion in AI-related capital expenditures in 2026, rising to $1.1 trillion in 2027.”
Hyperscaler capex cut
1all-time
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  • 2026-10-12 · No capex cut yet — $725B hyperscaler capex reaffirmed Oct 11
    Oct 11 2026 earnings: MSFT + META + GOOGL + AMZN 2026 capex guidance now ~$725B. Bears Burry and Grantham still waiting on this trigger to fire. Status: NOT YET…
Any of MSFT, GOOGL, META, AMZN cuts AI capex guidance or shortens useful lives in 10-Q Watched in: SEC 8-K, earnings call transcript, 10-Q filing
Mega-IPO filing (SpaceX / Anthropic / OpenAI)
3all-time
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  • 2026-10-12 · Trigger t2 (mega-IPO) fired earlier this year — RE-CONFIRMED
    SpaceX S-1 on EDGAR (May 20, 2026, ticker SPCX Nasdaq). OpenAI confidential S-1 Jun 8 2026 at ~$852B. Anthropic S-1 at $965B valuation, targeting Oct 2026 IPO w…
Any of SpaceX, Anthropic, OpenAI files S-1 or announces IPO Watched in: SEC EDGAR, FT, Bloomberg, Reuters
New central bank AI warning
6all-time
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  • 2026-10-12 · BIS-hosted conference Oct 1 2026: Lagarde + Bundesbank both raised AI financial-stability risks
    Lagarde: 'rising importance of AI puts the system-wide view to the test' at ESRB 10th Annual Conference. Bundesbank's Köhler-Geib called for EU 'AI Airbus'. Fed…
  • 2026-10-12 · BIS Bulletin No 137 (Oct 1): 55.2% of AI-firm inflows come from other AI firms
    First quantitative measurement of circular AI financing. Of all incoming investments in AI firms 2021-2025, 55.2% came from other AI firms. 46.4% of intra-AI de…
  • 2026-10-12 · RBA Oct 1 Financial Stability Review: hyperscaler SPV obligations $1-1.5T; 20-30y debt vs short-life hardware
    RBA on the same day as BIS Bulletin No 137: off-balance-sheet AI-project SPVs and vendor financing are 'becoming significant' — hyperscaler obligations estimate…
BIS, IMF, BoE, BdF, ECB, Fed publishes a new AI-bubble warning (publication, speech, or report) Watched in: bis.org, imf.org, bankofengland.co.uk, banque-france.fr
10Y Treasury move > 25bp in 7 days
6all-time
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  • 2026-10-12 · 10Y close 5.244% on Oct 9 — NOT a trigger fire
    10Y closed Fri Oct 9, 2026 at 5.244%, up ~+13bp in 7 sessions (Oct 1 5.237 → Oct 9 5.244). Up 41bp from Sep 9 (4.837%) but weekly +~13bp is below the 25bp/7-day…
  • 2026-10-12 · JPM Q3 2026: fixed-income trading revenue -4% YoY, banks in correction as 10Y at 5.24%
    JPM Q3 2026 results: fixed-income markets revenue $5.4B, down 4% YoY (commodities, rates, credit, public finance all weak). Total Markets revenue still +15% YoY…
  • 2026-10-12 · Dalio trigger t4 precondition met — long-end repricing underway, bank earnings confirm
    Dalio at Forbes Global CEO Oct 7 + Bloomberg TV Oct 6 both named 'rising interest rates forcing holders to turn wealth into cash' as the trigger. Bank earnings …
US 10-year yield moves more than 25 basis points in a 7-day window Watched in: FRED DGS10, Treasury.gov
SOX / Mag-7 divergence flip
1all-time
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  • 2026-10-12 · SOX vs Mag-7: divergence beginning, no clean flip yet
    Nvidia pulled back from $243 to ~$229 (-5.4%); Broadcom -25% since Jun 2; Oracle -40% since Jun 2. Yet NVDA forward-EPS revisions were +30% (vs Broadcom +20%, O…
Philadelphia Semiconductor Index underperforms the Magnificent-7 basket by >5% over 5 days, after a year of outperformance Watched in: SOX index, MAGS ETF, Mag-7 components
Hot (12+ all-time) Warm (6-11) Cool (1-5) Quiet (0)

Predictions & Sources (11)

SourceClaimDateStatus
BIS (Bank for International Settlements)
central_bank
AI boom scale and speed warrant caution; capex outpacing cash flow; opaque circular financingAnnual Economic Report 2026open
IMF (International Monetary Fund)
central_bank
Stretched equity valuations; 'disorderly correction' risk has risenOct 2025 statementopen
Bank of England FPC
central_bank
Sharp market correction if AI excitement fades or adoption disappointsOct 2025 FPC minutesopen
Banque de France
central_bank
Concentration of money in and between AI companies is a riskDec 2025 reportopen
Michael Burry (Scion / Cassandra Unchained)
named_investor
AI bubble pops in 2027; hyperscalers overstate profits by extending server/GPU useful livesSubstack postopen
Jeremy Grantham (GMO)
named_investor
We are in a US stock market and AI bubble; a major correction will eventually followGMO January 2026 letteropen
Ray Dalio
named_investor
Bubble signals at ~80% of 1929 and 2000 extremes; pop needs a trigger (long rates, mega-IPOs)Diary of a CEO podcastopen
JPMorgan Cembalest (Eye on the Market)
sell_side
42 AI companies drove 65-75% of S&P500 earnings since 2022; concentration risk; possible Metaverse moment2026 Outlook: Smothering Heightsopen
JPMorgan Hunter (Technical Strategy)
sell_side
SOX +87% YTD while Microsoft -18% = same divergence as 1999-2000TheStreet, Aug 2026 noteopen
Goldman Sachs
sell_side
AI now propping up S&P earnings growth; fragile dependency on hyperscaler capexSep 2026 reportopen
Morgan Stanley
sell_side
AI capex rising $800B (2026) → $1.1T (2027); cycle still expanding; shift from infra to softwareSep 2026 outlookopen

Triggers Armed (5)

TriggerWhat to watchSource feeds
Hyperscaler capex cut
high
Any of MSFT, GOOGL, META, AMZN cuts AI capex guidance or shortens useful lives in 10-QSEC 8-K, earnings call transcript, 10-Q filing
Mega-IPO filing (SpaceX / Anthropic / OpenAI)
high
Any of SpaceX, Anthropic, OpenAI files S-1 or announces IPOSEC EDGAR, FT, Bloomberg, Reuters
New central bank AI warning
medium
BIS, IMF, BoE, BdF, ECB, Fed publishes a new AI-bubble warning (publication, speech, or report)bis.org, imf.org, bankofengland.co.uk, banque-france.fr
10Y Treasury move > 25bp in 7 days
medium
US 10-year yield moves more than 25 basis points in a 7-day windowFRED DGS10, Treasury.gov
SOX / Mag-7 divergence flip
high
Philadelphia Semiconductor Index underperforms the Magnificent-7 basket by >5% over 5 days, after a year of outperformanceSOX index, MAGS ETF, Mag-7 components

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