Veteran investor Howard Marks isn’t calling the artificial intelligence boom a bubble — at least not for now.
“My response to date has been that the valuations are ... high but not crazy” the Oaktree Capital Management co-founder said Monday in an interview with CNBC’s Sara Eisen. “Expensive and going down tomorrow are not synonymous.”
Marks, known for his memos on market cycles and investor psychology, said while enthusiasm for AI stocks is undeniable, it hasn’t yet crossed into the realm of mania that defines a true bubble.
“To me, the main ingredient in bubbles is psychological excess ... some kind of temporary mania,” he said. “For a company in this sector or industry, there’s no such thing as a price too high. And I don’t detect that level of mania at this time, so I have not put the bubble label on this incident.... it just hasn’t reached that critical mass of mania.”
(You can view the full interview with Marks here on CNBC PRO.)
