Wall Street’s bulls and bears live in two different worlds when it comes to AI: Are we at the early stages of a technological revolution or another bubble destined to burst? And in the last month, the momentum has shifted towards the bears…
October saw significant drops in major tech sector names following the Nasdaq-100’s recent selloff, led mostly by Intel which plunged 47% on for the month. Nvidia and Google also saw drops well above 12% and as of Monday’s close, the tech-heavy index officially entered correction territory, falling more than 10% from its October 6 high.
Combined AI spending by major technology companies is expected to exceed $730 billion this year. So the question remains whether this money is being thrown down a black hole.
Tonight at 7PM ET, ZeroHedge brings together two veteran investors on opposing sides of the AI trade: Gene Munster and George Noble, moderated by Jack Farley, host of Monetary Matters.
Making the bullish case is Gene Munster, managing partner and co-founder of Deepwater Asset Management and previously spent 21 years at Piper Sandler. He argues investors are underestimating how early we are in the AI revolution.
Despite the latest selloff, he remains optimistic that AI spending will exceed Wall Street’s longer-term expectations. And regarding what appears to be a concentrated sale in chipmakers, Munster believes the industry’s growth will extend well beyond what today’s leaders like Nvidia and Intel can produce.
Looking past the market noise today, AI trade fundamentals remain solid. Early this morning $TSM reported Sep qtr revenue +51% y/y, and growth keeps accelerating: Dec-25: +21% Mar-26: +35% Jun-26: +36% Sep-26: +51% Even with TSM down 1.5% today vs Nasdaq down 0.6%, they’re up 6% over the past month vs Nasdaq up 3.5%
— Gene Munster (@munster_gene) October 8, 2026
Taking the bearish side is George Noble, the veteran investor who began his career working alongside legendary Fidelity fund manager Peter Lynch before running the Fidelity Overseas Fund. Noble believes the AI boom has developed into a capital-intensive speculative bubble, with companies spending enormous sums on chips and data centers without demonstrating adequate returns on investment.
Noble projects hyperscaler earnings will go negative by 2030 and compares the current AI infrastructure buildout to the shale industry’s capital spending boom.
Tech got COOKED again yesterday, and our shorts are working. CoreWeave is down 40% since we shorted it at $107 and Astera Labs is down 31% from $433. We pressed both again right after our last subscriber call, because I think this trade has a lot further to go. On that call I also explained why: chips and data centers are capital-intensive businesses, and capital-intensive booms tend to end the way shipping booms do. Everyone builds at once, and the debt and depreciation are still sitting there long after the demand fades. The clip above is that part of the call. Across the whole book, 22 of our 24 scored calls are winners. Our longs are up 30.3% on average and our shorts are down 38.1%, a 68.4% spread (121% annualized). We’re doing another live call THIS SUNDAY, November 1, at 10 AM ET, where I’ll walk Noble Update subscribers through where I think this market goes into year-end and the moves we’re lining up for it, then take your questions live. Our last one was terrific, and I hope to see you on this one too! We thrive in markets like these, and my goal is to help you MAKE MONEY without wasting your time on fancy stories. The live call and the full replay are for paid subscribers. The Zoom meeting details are below: https://t.co/LIyaSbD4ra
— George Noble (@gnoble79) October 29, 2026
So will we see a crash that makes Dot-Com and 2008 look like a picnic, as Enron short-seller Jim Chanos has called for? Or was October’s drop a buying opportunity?
Join Gene Munster, George Noble and Jack Farley tonight at 7PM ET to answer these questions. Here on the ZeroHedge homepage, X feed, and Youtube channel.
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