Peter Schiff says AI stocks bubble burst has likely happened amid SpaceX selloff

WikiBit|2026-07-21

Zusammenfassung:Peter Schiff, chief economist at Europac, has warned that the AI stocks bubble has likely burst, pointing to the ongoing selloff in SpaceX shares as a leading indicator. In a July 20 post analyzed by Finbold, Schiff distinguished between AI itself—which he does not consider a bubble—and AI stocks, which he argues face intense competition from low-cost Chinese models like Moonshot AIs Kimi K3 and DeepSeek Chat. Despite Schiff's bearish outlook, Wall Street analysts remain optimistic on several AI-related stocks: Micron Technology, Nvidia, and Sandisk each have average 12-month price targets implying significant upside, suggesting the bubble thesis could be invalidated if those targets are met.

Peter Schiff, chief economist and global strategist at Europac, has warned that the AI stocks bubble burst is at hand amid the ongoing selloff in Space Exploration Technologies Corp. (NASDAQ: SPCX) shares.

Schiff believes Artificial Intelligence (AI) is not a bubble. However, he noted that the AI stocks bubble has ‘likely already popped’, according to an X post on July 20, which Finbold analyzed on July 21.

“AI isnt a bubble, but AI stocks are. The bubble has likely already popped,” Schiff noted.

Schiff noted that the ongoing SpaceX stock selloff could be a leading indicator of the ongoing AI stocks bubble burst. Furthermore, he argued that AI stocks in the United States are facing intense competition from low-cost Chinese AI models led by Moonshot AIs Kimi K3 and DeepSeek Chat.

“SpaceX closed under $120, near the low of the day. Thats more than 11% below the IPO price. The chart is not looking good,” Schiff added in a follow-up post.

Which AI stocks are good to buy in 2026？

As Schiff believes that AI is not a bubble but AI stocks are, AI stocks that are aligned with enterprise spending and mainstream adoption of technology are well positioned to benefit. For instance, despite Micron Technology, Inc. (Nasdaq: MU) stock dropping more than 28% over the past 30 days, trading at $865.46 at press time, 30 Wall Street analysts surveyed by TipRanks have set an average 12-month target of about $1,569.29, thereby suggesting a potential 81.32% upside.

Additionally, although Nvidia Corp. (NASDAQ: NVDA) shares have dropped 2.57% over the past 30 days, trading at about $203.28 at the time of publication, 37 Wall Street analysts surveyed by TipRanks have set an average 12-month target of $309.94, which signals a possible 52.47% upside.

Meanwhile, 17 Wall Street analysts surveyed by TipRanks have set a 12-month average price target for Sandisk Corp. (NASDAQ: SNDK) at $2,041.88, despite the shares falling more than 39% over the past 30 days, to trade at about $1,390 at the time of reporting.

As such, Schiff‘s forecast of the AI stocks bubble could be invalidated if Wall Street analysts’ targets are achieved over the next 12 months.

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