Howard Marks is not convinced the AI boom is a bubble

Plenty of professional investors are warning that AI trading has inflated a stock market bubble. Howard Marks, co-founder and co-chairman of Oaktree Capital Management, is not ready to join that chorus, according to Bloomberg. His answer is more nuanced than a simple yes or no. Marks sees high valuations, speculative funding and heavy debt in the AI trade. He just doesn’t think those ingredients have produced the full recipe for a classic bubble yet. How Marks has framed the AI debate Marks laid out his initial view in a CNBC interview on October 13, 2025. He said AI valuations were high, but not yet a sign of the psychological mania that defines true bubbles. He expanded on the theme in a December 2025 memo titled “Is it a bubble?” In it, Marks acknowledged exceptional exuberance across the sector. He noted that AI stocks had accounted for a significant portion of S&P 500 gains, a reminder of how much the broader market now leans on a single theme. He also pointed to seed funding of more than $1 billion flowing to unproven startups. Marks flagged heavy corporate debt levels as well, tied to the infrastructure buildout behind AI. Even with all of that on the table, Marks did no...