Peter Schiff Warns of Potential AI Stock Bubble Burst as Kimi K3 Intensifies Competitive Pressure

By: rootdata|2026/07/20 16:46:00

Economist Peter Schiff has indicated that AI-related stocks are showing weak performance, with SPCX currently trading below $121, approximately 11% lower than its IPO price and down over 46% from its historical peak. The emergence of low-cost AI models may lead to a reassessment of the market's high growth expectations for AI companies, and investors should be cautious of the valuation correction risks associated with AI concept stocks. Schiff emphasized that the AI technology itself is not a bubble; rather, it is the capital market valuation frenzy surrounding the AI theme that is truly under pressure. As Chinese AI model competitors rapidly rise, the AI bubble is further dissipating, with Moonshot AI's Kimi K3 reinforcing the competitive landscape for low-cost AI in China, putting pressure on the valuations of American AI firms. He pointed out that the current market does not reflect a bubble in AI technology, but rather a bubble in AI stocks, which may have already begun to burst.

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