AI stocks are probably in a bubble — but might be worth holding on to, says Citadel’s Ken Griffin

Citadel founder Ken Griffin has weighed in on the debate over artificial intelligence stocks, suggesting that while investors are likely facing "bubbles," he isn't advising them to dump those holdings. His remarks capture a tension many market participants are grappling with: valuations in AI-linked names have climbed sharply, yet the underlying technology continues to reshape industries and drive earnings expectations.

The comment matters because it frames the discussion around bubbles less as a timing call and more as a question of conviction and risk management. Bubble conditions can persist longer than skeptics expect, and strong businesses can compound value even from elevated starting points—while others may not survive a repricing. Griffin's stance appears to acknowledge both possibilities rather than endorsing a blanket exit.

For observers, the takeaway is to watch fundamentals rather than headlines: revenue growth tied to AI adoption, capital spending trends, and whether earnings justify valuations. Concentration in AI names also means index-level risk, so diversification and position sizing remain relevant considerations. Griffin's view is a reminder that identifying a bubble and profiting from that view are separate challenges.