Ray Dalio says we are definitely in a bubble, but that doesn't mean you should sell yet

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While artificial intelligence spending is forming a bubble in the market, investors don’t need to give up their positions, according to Bridgewater founder Ray Dalio.

“Don’t sell just because there’s a bubble,” Dalio said Thursday on CNBC’s “Squawk Box.” “But if you look at the correlations with the next 10 years’ returns, when you are in that territory, you get very low returns.”

Dalio’s comments come as AI darling Nvidia

surged more than 5% Thursday on the back of better-than-expected earnings and guidance. Nvidia CEO Jensen Huang brushed off bubble concerns, telling analysts on Wednesday that “we see something very different.”