While there is an abundance of headlines suggesting that there may be a bubble in AI thanks in large part to the extraordinary amounts of Capex being spent to facilitate the buildout (importantly funded from cash and not debt), true bubble-like behavior can be found elsewhere in the market. Throughout 2025, meme-like theme stocks (small nuclear, quantum computing, etc.) and large-cap non-profitable stocks have seen their prices skyrocket based on very little merit. This week however has brought a reckoning with severe selling experienced in these areas, a “bursting bubble” that is productive for the long-term health of the market.
October 22, 2025
While there is an abundance of headlines suggesting that there may be a bubble in AI thanks in large part to the extraordinary amounts of Capex being spent to facilitate the buildout (importantly funded from cash and not debt), true bubble-like behavior can be found elsewhere in the market. Throughout 2025, meme-like theme stocks (small nuclear, quantum computing, etc.) and large-cap non-profitable stocks have seen their prices skyrocket based on very little merit. This week however has brought a reckoning with severe selling experienced in these areas, a “bursting bubble” that is productive for the long-term health of the market.