180: Is The AI Bubble Popping? w/ Charles Payne (Fox Business)
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What is the main topic discussed in this episode?
Hey everyone, and welcome back to the Rich Habits Podcast. We're so excited. Our guest today has spent nearly four decades studying the stock market and helping everyday investors navigate it. Before becoming one of the most recognizable faces in financial television, Charles Payne worked on Wall Street as an analyst, founded his own independent investment research firm over 30 years ago, and built a career around one simple idea, that wealth creation shouldn't be reserved For institution and head funds only, it should be accessible to everyone. Today, millions of Americans know him as the host of Making Money with Charles Payne on Fox Business, where he spent almost 20 years breaking down markets, interviewing CEOs, and helping retail investors make sense of everything from financial crises to AI booms.
Charles, we're super excited to have you. Welcome to the Rich Habits Podcast.
It's great to be here. Thank you.
So, Charles, I'm going to dig right in. You've been reading markets since you were a teenager. And when you look at the markets right now, here is we're filming today in the summer of 2026. What's the one thing you're seeing the most investors are completely missing or ignoring in the markets right now?
I think the focus is on too much on when it's all over. When does it end? When are we going over the cliff? Is this the dot-com boom all over again? Honestly, I don't blame investors. I think the financial media has really made it this way. It's sort of so interesting, the dynamics. It's like it's always going to some point. hit a brick wall, everyone will lose everything, and it's all going to be, you know, you wonder why people aren't in the market. Although something happened, and I think around 2020, I call it the new investor revolution. Main Street started to filter out the news differently. They started to look at this whole thing differently on a number of levels, by the way, not just one way, but in a lot of different ways.
And so... You know, people who are in the market, let's call them Main Street retail investors, they kind of get it differently. But people who are casual watchers that just occasionally listen to the media or read the journal or anything like that, they're missing out on what is a generational opportunity. And I think that's a shame.
I completely agree. And, you know, to your point, I think a lot of this, like, when's it all going to come, you know, crashing down on us? When's the AI bubble going to pop? A lot of that is, you know, people comparing the exuberance we've seen with AI to the dot-com bubble. But, you know, we then, and I'm sure you've seen the chart on X and a couple other people have shared it, right? But it's essentially overlaying and it shows you Cisco's stock price versus their earnings per share. and then it compares it to Nvidia's stock price and their earnings per share and the stark difference between those two companies, right? Cisco, you had it trading up to the moon with profits essentially ticking a little bit higher, but not really propelling that stock price higher, where the flip side, you see Nvidia over the years, obviously up 5, 10, 20x, whatever it's been, but their profits have followed.
And I think that's the big difference between what we've seen with the rise of AI and this sort of AI bubble that people are calling it compared to the dot com bubble is the stock action we've seen is driven by fundamentals versus back when it comes to the dot com. A lot of that was just optimism and exuberance and all this stuff that came back with that.
And I knew that was going to happen. I have a book called Unbreakable Investor that's three years old this October, and I have an entire chapter on that. I even dive in a little deeper because more recently people were saying, well, you know, those who say this isn't like the last time, remember earnings were going fast back then too. It was still smoke and mirror-ish, put it that way. In other words, if you look at Cisco, they were acquiring a lot of company.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:00β4:51
2
Is the AI bubble comparable to the dotβcom crash and why or why not?
4:51β16:43
3
How does Charles Payne compare AIβs impact to past industrial revolutions?
16:43β24:39
4
Why are memory and storage stocks (Micron, SanDisk, SK Hynix) rallying right now?
24:39β42:50
Speakers
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