Citadel's Ken Griffin Warns of AI Bubble and Looming Chip Pricing Collapse

Citadel founder Ken Griffin stated that artificial intelligence stocks are almost certainly in a bubble, while advising that investors should not necessarily rush to sell. Speaking at Citadel's annual conference, Griffin warned that an emerging glut of AI chips could trigger a steep collapse in GPU pricing due to low marginal operating costs, drawing comparisons to airline seats and the 2000 telecom fiber overbuild. Griffin characterized growing market skepticism as healthy. Amid heightened scrutiny over AI returns, the Philadelphia Semiconductor Index dropped 11.4% in a single week, while Yardeni Research forecasts the S&P 500 will reach 8,400 by mid-2027.