If the stock market bubble bursts, billionaires will not have an easy time either. Ray Dalio, the billionaire founder of Bridgewater Associates, appears to be worried that a major wealth wipeout could occur if the artificial intelligence sector's fortunes turn sour.

Speaking on Wednesday at the Forbes Global CEO Conference in Singapore, Dalio said: "Everyone says 'I'm worth a billion dollars,' but the problem is, just try spending that money." Dalio suggested that policies such as a wealth tax, which would force ultra-wealthy individuals to cash in their paper gains, could accelerate a bubble's collapse or serve as a catalyst for it.

He added: "To convert wealth into spending power, you have to sell assets for cash — and that is often the very moment when a bubble gets punctured." On June 3, 2026, Ray Dalio spoke at the 2026 Forbes Disruptors Summit in New York City.

Dalio warned that the speculative frenzy in the AI space may already be nearing its peak. On the topic of bubbles, he said: "We're not at the top yet, but we're getting closer and closer. I think we're already very close to the peak."

As he pointed out, the stock market is now essentially being held up by just three individual stocks, which has reignited market concerns about an AI stock bubble bursting. Data from Creative Planning shows that the S&P 500's individual stock concentration has hit a historic high, with NVIDIA, Apple, and Microsoft together accounting for more than 21% of the index's weighting.

These three stocks now wield unprecedented influence over the S&P 500. The only comparable precedent is the mid-1980s peak of the three industrial giants IBM, AT&T, and Exxon Mobil, when the three combined accounted for 13.4% of the S&P 500's weighting — less than today's three tech giants.

Hopefully, if the bubble does burst, Dalio's own finances will be well prepared.