AI stock bargain-buying caution theory… "Market could fall 40-60%"

Bubba Trading founder Todd Horwitz warned in a Nov. 3 interview with David Lin that the recent tech selloff is not yet a sufficient AI-stock buying opportunity, cautioning that the market could fall 40-60% as debt levels and weak profitability at AI-linked companies remain unresolved. He argued that even a strong short-term oversold rebound could prove a selling opportunity, with downward pressure potentially persisting through year-end. Horwitz stressed separating AI's long-term potential from current equity valuations, drawing a parallel to the internet bubble, where the technology transformed the economy but early investors still suffered heavy losses. The warning matters because it challenges the consensus view that the tech pullback is a dip worth buying, and investors should watch whether AI-related debt and earnings quality deteriorate further into year-end.