Tom Lee, co-founder of research firm Fundstrat Global Advisors, believes that rumors of a bubble in the artificial intelligence sector are premature. According to his estimates, investments in AI could reach $30 trillion by 2033.
Lee compares such expenditures to the construction of internet infrastructure in the 1990s. He shared his forecast at the TOKEN2049 conference in Singapore. Meanwhile, Bridgewater Associates founder Ray Dalio called the AI market a classic bubble. Lee, however, believes that the almost universal discussion of the problem itself serves as a reason to doubt the existence of a bubble.
Why Lee expects the AI bubble to peak in 2033
Lee explains that many current fund managers did not manage money during the dot-com bubble or the 2008 crisis.
“I have never seen a bubble where everyone unanimously claims it is a bubble,” he says.
Lee's main argument is cost. He estimates investments in the internet, mobile communications, and smartphones in 2026 at $35 trillion. According to him, spending on AI infrastructure will approach $30 trillion. For comparison, McKinsey estimated in April 2025 that data centers for AI would require $5.2 trillion in investments by 2030.
Lee notes that Cisco's stock peaked only in March 2000 and had previously dropped by 50% twice. After the peak of the boom, the company lost almost 90% in value. If following such a scenario, the AI sector is currently in the position of 1997. Wireless technologies developed exponentially for 25 years, and their stocks peaked 10 years later, so Lee targets 2033.
He adds that approximately $7 trillion in new liquid assets emerge globally each year, which he estimates is sufficient to finance AI expenditures.
Does debt affect AI investors' prospects
Dalio's warning about a bubble is linked to the rise in borrowing. He argues that when rates increase, investors start to realize paper profits. Mass asset sales typically burst the bubble.
According to Dalio, markets are close to this stage. Doubts about AI's prospects were also reflected in Asia on October 13: a sell-off of Asian stocks wiped out over $800 billion.
Investors' views differ significantly on funding the sector: Lee considers spending on technology as early-stage cycle investments, while Dalio claims that high debt levels will lead to a collapse. Both experts draw conclusions based on the same expenditures. The deciding factor is the source of payment—direct cash flow or borrowed credit.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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