In a recent SiriusXM Business Radio interview, I shared my perspective on AI, NVIDIA, market valuations, and why charts still matter most.

Is the Stock Market Truly Overvalued Right Now?

Many investors are asking whether stocks, especially AI and tech names, have once again become overvalued in 2026.

My answer: it depends on your definition of “overvalued.”

Take NVIDIA. While it trades at elevated levels, its P/E multiple is actually lower than Costco’s or Walmart’s. The market isn’t pricing today’s numbers — it’s pricing tomorrow’s expected AI growth.

The AI Infrastructure Boom

AI is no longer a future story. It is already one of the market’s dominant themes.

The bigger questions now are execution-focused:

Will hyperscalers actually commit the trillions being discussed for AI infrastructure?
Can enough data centers get built despite regulatory and local resistance?
Will long-term contracts and spending commitments hold up?

As long as expectations for future AI spending remain strong, related stocks could continue to benefit.

Lessons From Previous Tech Revolutions

We’ve seen similar skepticism before.

When Google and Facebook first went public, many investors called their valuations absurd. Facebook fell sharply after its IPO, yet long-term skeptics were ultimately proven wrong.

Even Warren Buffett has acknowledged that he largely missed the internet boom.

I believe AI could represent a similar shift, where stocks that appear expensive today may simply be early in a much larger trend.

Why Charts and Price Action Still Matter

Fundamentals matter because they attract institutional money. But retail traders who try to invest exactly like massive hedge funds often struggle.

My core advice is simple: combine fundamentals with charts.

Stocks move on future expectations, not current reality. Strong news that fails to push a stock higher can often signal that momentum is weakening beneath the surface.

Hut 8 (HUT): Why the Stock Rose After Weak Earnings

Hut 8 recently reported disappointing earnings and revenue numbers, yet the stock surged anyway.

Why?

The market appears to be revaluing Hut 8 as more than just a Bitcoin miner. Investors are increasingly viewing it as part of the broader AI infrastructure and data center buildout story. Heavy short interest also likely contributed to the sharp move higher.

The lesson is important: price action and market expectations often matter more than headlines alone.

Risk First: The #1 Rule for Volatile Markets

Whether you’re trading Microsoft or a high-volatility AI stock, the most important lesson remains simple:

Decide your risk before entering the trade
Set your stop-loss level ahead of time
Raise stops as positions move in your favor

This process-driven approach turns even losing trades into productive ones because the trade was managed correctly.

Key Takeaways

The 2026 market is trading heavily on future AI expectations
Stocks like NVIDIA may not be as overvalued as they initially appear
Charts and price action often reveal important information before headlines do
Risk management matters more than prediction
Major technological shifts can distort traditional valuation metrics for extended periods

Frequently Asked Questions

Is the stock market in a bubble in 2026?

Not necessarily. I view the current market as potentially being in the early-to-middle stages of a major AI-driven transformation rather than a classic bubble.

Should investors buy NVIDIA right now?

I remain bullish on NVIDIA and the broader AI infrastructure trend.

What is the best way to approach volatile AI stocks?

Start with risk management. Define your maximum loss before entering the trade, use stop-losses, and adjust them as the trade moves in your favor.

stock market valuation

Is the Stock Market Overvalued in 2026?