AI bubble or real boom? What investors should watch

Is AI in a bubble, or are today’s soaring share prices backed by real business growth? In this episode of the Australian Finance Podcast, Owen Rask and Gemma Mitchell unpack what an investment bubble actually is and why price, profit and valuation are different things. Using examples from tulip mania, Beanie Babies, NFTs, pandemic-era puppy prices and Pokémon cards, they explain how scarcity, hype and FOMO can push prices far beyond fundamentals. The conversation then turns to AI. Owen walks through the extraordinary spending behind data centres and chips, why NVIDIA has captured so much of the industry’s revenue, and how circular financing between chipmakers and customers can complicate the picture. They also revisit Microsoft after the dot-com crash, when investors waited about 15 years to recover the previous share-price peak. So what happens if the AI bubble bursts? Owen and Gemma explain why the technology is unlikely to disappear, but prices, access and business models could change sharply. They also discuss why selling everything and waiting in cash creates its own risks, especially when the market’s best and worst days often arrive close together. If elevated prices are making you nervous, this episode offers a beginner-friendly framework for thinking about bubbles, diversification and long-term investing without trying to predict the next crash. Episode resources – Buy Gemma’s book “The Money Reset” – Speak with the Rask Advice team – Ask a question (select the Finance podcast) - ⁠Is AI Profitable Yet?⁠ - ⁠Morgan Housel’s investing talk⁠ - ⁠PriceCharting: Charizard [1st Edition] #4⁠ Show partner resources – View VanEck's range of funds – Join Pearler using the code "RASKSWITCH" and get $32 of Pearler Credit – Get 50% off your first two months using PocketSmith – Whatever comes next for your business, power it with Stripe Rask resources – All services – Financial Planning – Invest with us – Access Show Notes – Ask a question – We love feedback! Follow us on social media – Instagram: @rask.invest – TikTok: @rask.invest Disclaimer The information in this episode is provided by The Rask Group Pty Ltd and contains general financial product advice only. It does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you and consider seeking personal advice from a licensed financial adviser. You can read our Financial Services Guide at www.rask.com.au/fsg. If a financial product is mentioned, consider the relevant PDS and TMD, where applicable, before making any financial decision. Past performance is not a reliable indicator of future performance. Returns are not guaranteed and capital may be at risk. The Rask Group Pty Ltd is a Corporate Authorised Representative No. 1280930 of Rask Licensing Pty Ltd, AFSL 563 907. Learn more about your ad choices. Visit megaphone.fm/adchoices