'AI Isn't a Bubble, AI Stocks Are': Peter Schiff Warns as SpaceX Drops 46% From Peak

Europac chief economist Peter Schiff recently warned in an X post that AI isn't a bubble, but AI stocks are, highlighting the decline in SpaceX stock price to as low as $120 per share. The new low is 46% below its high and nearly 11% lower than its IPO price.

Schiff believes the bubble has likely popped. He also noted how Moonshot AI's Kimi K3 is posing stiff competition for Elon Musk's SpaceX.

He highlighted in a YouTube clip that AI will destroy more jobs than it creates, which indicates overall progress, but requires the global workforce to upskill or transition to a different role.

In a Tuesday X post, Schiff also highlighted that Trump's new 50% tariffs on many Canadian imports will impact Americans considerably due to a marked rise in living costs, particularly home construction.

Schiff's post on new tariffs also triggered a strong reaction online, with many users explaining that 50% tariff on Canadian lumber when US housing starts are already cratering is like pricing out an entire generation from owning a home to win a trade war they never asked for.

One X user by the name of Valai said that such tariffs will likely push domestic lumber prices through the roof, adding that Canada ships 27% of the US softwood supply. A tariff would compel domestic mills to bid higher, with builders eventually passing costs to homebuyers.

Why Is Moonshot AI Making Headlines?

Chinese startup Moonshot AI recently launched the Kimi K3 open-weight AI model, comprising 2.8 trillion parameters, designed for software engineering and automating task execution.

However, surging demand reportedly compelled Moonshot AI to temporarily halt new subscriptions. Simultaneously, the company is pursuing a Hong Kong IPO reportedly valued at $30 billion.

The AI model competes directly in the same segment where Chinese firms have advanced rapidly, with Alibaba's Qwen 3.8-Max, also rolled out this week, for similar developer and enterprise use cases. The back-to-back release of AI models in China could indicate that the Mainland's AI sector has shifted its competitive focus away from raw parameter count toward practical deployment, like coding and reasoning.

People Share Diverging Views on Schiff's AI Bubble Warning

An X user highlighted that the fall of SpaceX stock and the repricing of the entire chip complex could mean that AI stocks are returning to reality instead of AI failing altogether.

Assymmetric Edge Research also noted on X that using SpaceX as a proxy for an AI bubble burst is flawed, adding that its latest stock price action is being driven by factors unrelated to AI fundamentals.

Another X user highlighted how a podcast with Chris Macintosh discussed that AI chips will need constant replacements every three years, positioning chipmakers to benefit the most from this trend. Many people concurred with the user's reasoning, and even disclosed that this is the exact reason they are bullish on semiconductors for the longer term.

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