Billionaire investor Michael Novogratz, CEO of Galaxy Digital, has recommended investing in artificial intelligence, stating that while the AI investment boom is a bubble, the upward trend is not yet over.

According to Bloomberg News, Novogratz described AI as "the greatest bubble of our lifetime" during the Greenwich Economic Forum held in Greenwich, Connecticut, this week.

Nonetheless, he argued that it is not yet time to pull back from AI investments.

"Bubbles don't end the way they are right now," Novogratz said. "I know how bubbles end. They end dramatically, and we are not at that stage yet."

He evaluated that AI-related stocks are still cheap based on price-to-earnings ratios.

"If you haven't invested in AI, you might as well just go home and stick your head in a bucket of ice water," he said.

The recent upward trajectory of AI-related stocks has been relentless.

Driven by the strength of AI-related stocks, the S&P 500 index hit a record high the previous day, and NVIDIA's market capitalization approached approximately 8,040 trillion won.

On the other hand, the assessment of Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund, is more pessimistic than that of Novogratz.

Speaking at an event in Singapore, he described the AI investment craze as a "classic bubble" and diagnosed that rising interest rates are bringing the market closer to the point where the bubble could burst.

If interest rates continue to rise, we will reach the "point where the bubble starts to burst," Dalio said, adding, "We are still before that stage, but we are approaching it. I think we've gotten quite close."

Wall Street opinions surrounding the AI bubble are also divided.

Bank of America strategists advised that investors worried about a potential plunge in tech stocks can use stock derivatives to participate in the upside while simultaneously reducing the risk of a bubble collapse.

Conversely, Hou Wey Fook, Chief Investment Officer at DBS Group, argued that AI tech stocks are still far from being a bubble, noting that NVIDIA's price-to-earnings ratio is close to its lowest level since 2016 and its earnings growth next year is expected to reach 70%.

(Reported by Jung Da-eun, Video by Jang Yu-jin, Design: Yang Hye-min, Produced by SBS Digital News)