Ray Dalio: AI will change the world but related stocks could still drop 80% On July 17, 2026, in an interview with My First Million, Ray Dalio @RayDalio stated that during a bubble period, even the most successful companies could see their stock prices plunge by about 80%. He

What happened

Ray Dalio warned that during a bubble period, even the most successful AI‑related companies could see their stock prices plunge about 80%.

Confirmed

Global impact / market context

The warning suggests that rapid AI hype may not protect investors from large losses, so careful valuation and risk management are needed when allocating capital to AI stocks.

Analyst inference

AI investments have surged, driving high valuations, but past bubbles show that such enthusiasm can quickly reverse, leading to steep price corrections for even top firms.

Analyst inference

What to watch

1. Watch for AI company valuations that appear stretched relative to earnings, as this may signal a bubble that could trigger sharp price drops. Proposed
2. Monitor actual stock price movements of leading AI firms for sudden declines, which would directly reflect Dalio’s warning about an 80% plunge risk. Proposed
3. Track regulatory announcements on AI, since new rules could raise compliance costs and affect profitability, influencing stock performance. Proposed

Evidence

• x.com