AI (artificial intelligence) investment is in bubble territory according to Dowd, and the lights are about to go out on that trade. Dowd says:“The stock market is 45% AI and AI adjacent. When the equity market figures out the party may be slowing or it’s over, that will affect the stock market. I think the party is closer to the end than the beginning, and closing time will be upon us soon.” When the AI bubble pops, Dowd expect a “nasty pullback in the stock market.”