Bubble bursts in 2027, Nvidia earnings preview, Materials sector set-up, AirBnB takes flight
August 25, 2026
AI Summary
5 min readThe anticipatory market: Nvidia, AI capex, and the bull case for 2027
The most striking moment of this episode wasn't a stock pick or an earnings estimate — it was the hosts' reaction to a former Federal Reserve official calling his shot. Bill Dudley, ex-chairman of the New York Fed, published a Bloomberg op-ed laying out five reasons the AI bubble will burst by the end of 2027. The hosts didn't dismiss it as wrong. They dismissed it as boring. "If you're going to call your shot, tell me something I don't know," one said. "There's nothing in there that's going to do that." That exchange crystallized the episode's central tension: the market is already pricing in the slowdown Dudley predicts, which is exactly why the bull case for the next leg of this cycle depends on something most investors aren't yet watching.
Dudley's consensus bear case and why it might not matter
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What you'll learn
- 1 Timestamped Outline
- 2 (00:16) **Opening Banter & Housekeeping** - Hosts discuss Dolly Parton tributes, Live Nation settlement, and upcoming event promotion
- 3 (03:57) **Sponsor Segment: FM Invest** - Announcement of FM Invest acquisition by T. Rowe Price and SGVA ETF pitch
- 4 (05:23) **Peak AI Spend & Anticipatory Markets** - Josh argues that stock markets price in future expectations, not current conditions
- 5 (08:28) **Bill Dudley's Bubble Prediction** - Analysis of former NY Fed chair's op-ed predicting a bubble burst by end of 2027
- 6 (14:31) **Michael's Pushback on Dudley** - Michael dismisses the bear case as overly consensus and unremarkable
- 7 (18:31) **Debate on Former Fed Officials as Pundits** - Discussion about whether Dudley's pedigree makes his predictions more significant
+ Full timestamped outline available in the app
Show Notes
Join Downtown Josh Brown and Michael Batnick for another episode of What Are Your Thoughts and see what they have to say about: whether we’re approaching peak AI spending, what Nvidia’s earnings could tell us about the next phase of the AI trade, and why the biggest opportunity may be companies using AI to surprise investors with better-than-expected growth. Plus, Airbnb and Delta as emerging AI beneficiaries, a bullish setup in materials, ETF Issuer of the Year, LeBron James’ massive $300 million loan, Netflix vs. Spotify, and more.
This episode is sponsored by F/m Investments and SGVA, the F/m Accumulator Ultrashort Treasury ETF. To learn more about SGVA, visit Fminvest.com/SGVA
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Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Josh Brown are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management.
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