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While the Market Worries, Trump Confident There’s No Need to Fear an AI Bubble
U.S. President Donald Trump has dismissed market concerns that artificial intelligence (AI) could collapse and drag down other assets.
When asked whether he was worried about an AI bubble, Trump told AFP:
> “No, I love AI. I think it’s going to be very helpful. There are so many great things happening with it.”
It’s worth noting that global stock markets have been highly volatile lately, especially in the tech sector. Shares of AI-related companies such as Nvidia, whose market capitalization recently hit a record US$5 trillion, have plunged by 10% over the past week.
Meanwhile, the crypto market also suffered a major liquidation of around US$2 billion on Wednesday (Nov 5), with Bitcoin dropping to US$99,000.
As a result, many investors fear a potential AI bubble burst similar to the dot-com crash of 2000, when hype and overinvestment far exceeded the real value of the technology.
These market worries intensified after Michael Burry, the famed investor known for predicting the 2008 financial crisis, sold off his major tech holdings — Palantir Technologies (PLTR) and Nvidia (NVDA) — worth US$912 million and US$186 million respectively, signaling that current AI stock valuations may be overstretched and unsustainable.
Despite this, Trump has remained consistent in his support for the AI sector as a driver of U.S. leadership. Since January 2025, he has revoked President Biden’s 2023 Executive Order regulating AI risks (such as privacy, discrimination, and national security).
Shortly afterward, Trump issued a new directive titled “Removing Barriers to American Leadership in Artificial Intelligence,” which focuses on eliminating excessive regulations to boost innovation in the AI industry.
