Danny Moses, known for his role in betting against the 2008 housing market with Steve Eisman’s FrontPoint Partners, recently spoke to Business Insider about the risks he sees in today’s booming AI market. More specifically, he believes that we are entering into bubble territory after drawing comparisons to the dot-com era of the early 2000s. While he agrees that AI is a real, long‑term growth trend, he believes that valuations are starting to go above what the numbers can realistically support.
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However, Moses stressed that this is not a call to bet against AI entirely. Instead, he urged investors to be selective and research their investments more carefully. Notably, he said that the safest way to invest in AI is through large technology companies like Amazon (AMZN), Google (GOOGL), Meta (META), and Microsoft (MSFT). This is because these firms generate strong cash flow and can reduce their spending if needed, unlike smaller companies that depend heavily on constant investment just to survive. At the same time, Moses warned that not every AI‑related company is equally positioned.
He pointed to Oracle (ORCL) as an example of a firm facing pressure from high debt and large cash requirements. Meanwhile, he sees Super Micro Computer (SMCI) and CoreWeave (CRWV) as riskier, more volatile plays. Moses added that investors are now beginning to separate winners from losers and prefer companies with stronger balance sheets. Separately, Moses said that he is bullish on uranium as a long‑term beneficiary of AI’s energy needs, but warned that the infrastructure required to support AI will take much longer to develop than many investors expect.
Which AI Stock Is the Better Buy?
Turning to Wall Street, out of the AI stocks mentioned above, analysts think that Oracle stock has the most room to run. In fact, Oracle’s average price target of $308.87 per share implies more than 56% upside potential.
