3 AI Stocks At Risk as Former White House Advisers Warn AI Bubble is “Still Inflating”

Two former economic advisers to the White House, Jared Bernstein and Ryan Cummings, have warned that the AI bubble is growing bigger, a statement that has moved the spotlight to three leading AI stocks: Nvidia (NASDAQ: NVDA), SpaceX (NASDAQ: SPCX) and Micron Technology (NASDAQ: MU).

However, NVDA and MU stocks defied the bearish outlook on AI delivered by the two analysts and increased by 3.65% and 1.11%, respectively. But SPCX stock was down by 0.81% on July 8 to close trading at $148.

White House Advisers Warn About AI Bubble as BlackRock Exits AI Stocks

Bernstein and Cummings published a Substack post about their views on AI, where they said that the gains seen with AI-related stocks like MU and NVDA suggest that the AI bubble is “still inflating.”

The analysts noted that while these stocks may be moving up, their valuations are being dented by the companies’ spending heavily on AI.

According to the analysts, technology-focused investments account for nearly 5% of the US GDP, and they say that this is higher than what was seen during the dot-com bubble.

“The aggressive push into AI is leaving these tech giants with significantly less cash,” the analysts said.

Their bearish forecast comes as BlackRock analyst Rick Rieder says that the asset manager is trimming its exposure to AI stocks and moving towards the secondary beneficiaries of the AI boom.

Such beneficiaries include AI infrastructure providers like Bitcoin miner TeraWulf that leased out its data center to Anthropic for 20 years.

NVDA Stock Price Soars Despite Bearish AI Outlook

The price of NVDA shares increased by 3.65% on July 8, to close trading at $204 despite escalating geopolitical tensions. This AI stock defied the bearish outlook coming from analysts warning about an AI bubble and created its biggest green candle since June 1, 2026.

This AI stock is extending its gains today, July 9, because it was up by 1% in pre-market trading at the time of writing.

If this stock continues to rise, it might move to the June 22 high of $212.

The CMF reading of 0.08 supports the bullish forecast of NVDA stock price moving to $212 because it shows that there is more buying pressure than selling pressure.

The ADX line that is also rising, suggests that the uptrend is strong, and NVDA could reach the June 22 high of $212.

SpaceX Stock Price Extends Downtrend as Cathie Wood Doubles Down

The warnings around an AI boom seem to have cast a bearish outlook on the SpaceX stock that dropped below its NASDAQ debut price of $150.

SPCX shares closed trading at $148 on July 8. However, a slight gain of 2% was seen on July 9 during pre-market trading amid ARK Invest’s move to buy $16 million worth of SPCX shares on July 8.

SPCX stock needs to avoid a drop below the support of $145. Such a drop would pull the price down to the IPO price of $135.

However, if the slight gain of 2% seen during pre-market trading continues, the shares could move above the psychological resistance of $150.

But the MACD line that is negative suggests that bears have a good grip, and this could hinder a move above the obstacle of $150.

MU Stock Drops Below $1,000 as Rally Cools

Micron shares dropped below the psychological support of $1,000 on July 6. However, the volume bars that are green for two straight days show that the drop below $1,000 fuelled buying activity.

The MU AI stock was up by 6% today, July 9, to trade at $948 at the time of writing. If the gain continues as buyers come back because of easing geopolitical tensions, MU stock could move to the obstacle at $1,000.

But the RSI reading of 49 suggests that bulls are losing their grip despite the recent gains.

Micron shares could drop to the support of $900 if the buying pressure seen in the last two days fades.