Peter Schiff Says the AI Bubble Has 'a Lot More Air' Left to Come Out Amid SPCX Decline

In a post on X on Tuesday, Schiff underlined that the AI trade was unwinding and said that SpaceX was “down over 20% since its IPO.” He then said that it was down 52% from its all-time high of $225 per share.

Read Also: Gary Black Says Only People 'Shocked' by Tesla, SpaceX Stock Prices Are Those That Didn't Do the Math as Ross Gerber Smells Buying Opportunity

“It looks like the SpaceX IPO marked the peak of the AI bubble,” the Echelon Wealth Partners co-founder said. He then added that while AI was real, there was a “lot more air left to come out of overhyped AI-related stocks.”

Schiff had previously warned against investing in stocks based on hype, saying that SpaceX was “coming back down to earth” after its post-IPO rally. Notably, SpaceX’s decline has resulted in the company’s valuation losing a Tesla Inc.-sized (NASDAQ:TSLA) figure.

The economist had also said that the rally had caused Musk to lose $100 billion in a week as both Tesla and SpaceX recorded sharp declines. Following the slide, Musk no longer retains the trillionaire title, with his net worth being around $724 billion, according to the Bloomberg Billionaires Index.

Shorting SpaceX and AI?

Meanwhile, market research firm S3 Partners said that SpaceX had become the second-most profitable company to short, with short-sellers clearing upwards of $7 billion betting against the commercial space flight giant. Shorts against SpaceX have also reportedly crossed $26 billion.

Benzinga Edge Rankings show SpaceX fails to provide a favorable price trend in the Short, Medium and Long term.

Price Action: SpaceX shares were down 1.33% to $114.86 during overnight trading on Tuesday.

Read Also: NASA Chief Jared Isaacman Says 'Never Bet Against' Elon Musk, Adds 'We Can't Do It Without' SpaceX for Moon Base

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