Peter Schiff warns that the AI stock bubble may have already burst, with Kimi K3 further intensifying pressure from low-cost competition

PANews July 21 news, economist and Bitcoin critic Peter Schiff said that AI-related stocks have been performing poorly. Among them, $SPCX ’s current trading price has already fallen below $121, about 11% lower than its IPO offering price, and down more than 46% from its historical high. As low-cost AI models continue to emerge, the market’s earlier high-growth expectations for AI companies may need to be reassessed, and investors should be alert to the risk of valuation pullbacks for AI concept stocks. However, Peter Schiff also emphasized that the AI technology itself is not a bubble; what has been hit is the valuation frenzy in the capital market formed around the AI theme.

With China’s AI model competitors accelerating their rise, the AI bubble is further deflating. Kimi K3, launched by Moonshot AI (Dark Side of the Moon), is strengthening China’s low-cost AI competition, putting pressure on the valuations of U.S. AI-related companies. The current market, he said, is not “that there is a bubble in AI technology, but that there is a bubble in AI stocks,” and he believes this bubble may have already begun to break.