‘I just want out’: Billionaire Jeffrey Gundlach says you should have ‘almost nothing’ in AI stocks — what to buy instead

Even if AI doesn't "kill us," Jeffrey Gundlach thinks it'll "kill" your portfolio.​

The founder and CEO of DoubleLine Capital — who famously predicted the housing bubble of 2007 — is now forecasting a major fall for AI-related stocks. Although there are many reasons why Gundlach sees the AI boom collapsing, he focused on the recent narrative shift spurred by former Anthropic researcher Jacob Coxon's viral X post .

Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one

Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here's what it is and 3 simple steps to fix it ASAP

The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes

In an interview on the Julia La Roche Podcast , Gundlach said he was "perfectly fine owning some AI by using other types of equity vehicles" in the past. However, with the concerns over AI's capabilities and calls for a slowdown, he says, "I want out."

For Gundlach, "cracks" in the AI narrative have already begun to show.

"This is sort of strange behavior where something's rolling along, and there's great belief in it and a lot of money being made in it, and then the narrative changes in a fairly radical way: That this is going to kill us all," he said.

To illustrate his point, Gundlach used the analogy of a steel mill in his hometown of Buffalo, New York, in the early 1900s. At first, the press had only positive things to say about the opportunities for the local economy. Fast-forward to the Panic of 1907 , and people started talking about the plant's dark side, like rising injuries and deaths.

Gundlach sees the same mood shift happening in AI.

"It went from, 'Let's look at the bright side of things,' to 'Wait a minute, it isn't all perfect,'" he said. "And that's sort of where we are, but we're doing it at a very high valuation.​

While Gundlach isn't stopping anyone from getting into AI, he warns the rose-tinted glasses have already come off. "We're past that point where everything's viewed as beautiful," he said. "They might even be finding problems that aren't there, it might be going to that."​

​Gundlach admitted he didn't know when the AI trade will collapse, but he said it's probably sooner rather than later.

He pointed to the incredible expected addressable markets companies like SpaceX are touting, which CEO Elon Musk reportedly puts at $28.5 trillion . With one company supposedly gobbling up so much of AI's market share, Gundlach believes there won't be enough wealth that can spread evenly.