AI bubble exit strategies

ChrisKay · 2025-10-07T04:35:28.732568Z

A question for the swarm knowledge: What exit strategies do you have? How do you secure your profits through a possible bursting of the AI bubble burst? Maybe it's just me, but somehow I still don't have a real exit strategy to protect my profits in case the AI bubble threatens to burst. My portfolio has been doing quite well recently and with $IREN $CIFR $NVDA $700 $GOOGL $MSFT am quite well in the plus. Thank you for your input!

D.S.@Crash-Propheteus

1Lun

We are currently in an AI bubble ??? 🤔 Well, if you think so......I have a very simple solution to your problem: sell everything and put cash under your pillow or in a savings account at the savings bank. 😂

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TomTurboInvest@TomTurboInvest

1Lun

It is good to think about an exit strategy in good time! Because the sell-off of the flagpole will come at some point, but quickly. At least that's always been the case in the past. If you are caught unprepared, it is easy to lose a good part of your profit, or FOMO late entrants often end up in the red.
You can "trade" by means of a trading stop loss, or also think about selling in tranches. Just letting it run usually does not end well in such hot momentum phases.

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Keineui@Keineui

1Lun

I handle it in such a way that I take out the stake after reaching the 100% return. The rest can continue to run with a trailing stop loss. At the same time, I am strengthening my ETFs, $BTC and gold. I haven't taken a crash with me yet, but I hope that will be enough. That way I have the stake out, take profits and the rest, which has not run so hot, can continue to run for >10 years anyway.

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ChrisKay@ChrisKay

1Lun

@Keineui Thank you for the info and for sharing. I also added it to my portfolio yesterday.

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Thomas@Thomas_1963

1Lun

@Keineui That's exactly how I do it.

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Lz@Lz777

1Lun

Profit-taking, reallocation to other sectors.

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Schrauber1113@GordenShanway

1Lun

I cashed out my plus in ASML yesterday.

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Waxman@Waxman

1Lun

@GordenShanway same

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JH90@JH90

1Lun

same

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Schrauber1113@GordenShanway

1Lun

@Waxman our order situation at ASML is also falling drastically for 2026.
almost 30% less so far

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Malte@Malte123

1Lun

If you are unsure, sell 10-20% of your positions at regular intervals.
For example, 10% every 4 months. Then reallocate to what you think is safer/unbubbled.

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StockSniper@StockSniper

1Lun

I have never regretted taking profits. What I have regretted is when a 300% was running sideways for over a year (or down and up again), so it was a 0 number.

Taking profits is NEVER a mistake! Of course in other sectors or areas and not in the savings account

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Global I.@gloinvest

1Lun

Bubble? Wo? Nvidia KGV26. Costco KGV45.

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Jakob C.@Creutzfeldt_Jakob

1Lun

@gloinvest The big players have been pushing the same billions of dollars back and forth for a few weeks now and are rising higher and higher on such news - yes, that points to a bubble. Maybe don't just mention the Nvidia P/E ratio, but also look at other AI players, some of which are unprofitably pushing triple-digit P/E ratios. You don't have to fear the immediate bursting of a bubble, but closing your eyes to the signs is of course also naïve.

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ChrisKay@ChrisKay

1Lun

@investment_guru_2035 My thoughts exactly...

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D.S.@Crash-Propheteus

1Lun

@investment_guru_2035 As an investment guru, you naturally have a much better view of the AI bubble than us normal investors........

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Jakob C.@Creutzfeldt_Jakob

1Lun

@Propheteus Stick your crude slogans somewhere else if you have nothing to contribute.

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D.S.@Crash-Propheteus

1Lun

@investment_guru_2035 Please always remain friendly, young Jedi Knight!

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Jakob C.@Creutzfeldt_Jakob

1Lun

@Propheteus Then don't start with the sh***...

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D.S.@Crash-Propheteus

1Lun

@investment_guru_2035 Always friendly, please!

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Jakob C.@Creutzfeldt_Jakob

1Lun

@Propheteus Do you have anything to contribute in terms of content?

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ChrisKay@ChrisKay

1Lun

@Propheteus @investm_guru_2035 People, please remain friendly and objective. No need to tear each other apart. Posts like this are meant to discuss and transfer knowledge and simply share ideas.

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Chris@ChrisA98_

1Lun

@investment_guru_2035 https://openai.com/index/openai-nvidia-systems-partnership/

They are not "pushing billions back and forth" behind a multi-year plan. Here, OpenAI is actively buying physical resources from NVIDIA in the form of hardware. OpenAI wants to build these large data centers with the help of NVIDIA.

Always remember that,

It's not ignorance that causes problems. It's what you think you know.

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Mo@BigMo

1Lun

One problem with investing in individual stocks is that you ideally have to manage them individually.
What was the intention behind the purchase?
Long-term investment as long as the company figures are right?
Or are you simply taking the AI momentum with you and are not interested in valuations? In this case, the best way to exit is to follow technical rules such as moving averages.

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ChrisKay@ChrisKay

1Lun

@BigMo With $NVDA, for example, it's more of a medium-term trade that I might even want to hold until I retire. The same applies to $MSFT or $GOOGL. I see them as solid investments. But with stocks like $CIFR $IREN I see a short-term trade to take advantage of the AI momentum.

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Mo@BigMo

1Lun

@ChrisKay I'm with you on Nvidia, Microsoft and Google.
With stocks like $IREN that have made 1000% in 5 months, I can understand that you are getting nervous.
The share price is already parabolic, but it's quite possible that $IREN and co. will double again. 🤷‍♂️

That's what makes it so difficult and there is no perfect solution.
After all, many market participants want to time exactly the top.

So it's best to use a trailing stoploss or fixed stoploss that you adjust manually.
Moving averages also work, but you potentially lose a lot of performance because the price is extremely far away from e.g. 50/200 daily MAs...

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ChrisKay@ChrisKay

1Lun

@BigMo great, thank you. Yesterday I set the corresponding stop prices and always adjust them. Defined tranches are sold

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Pascal W.@pwasbeer

1Lun

Buy gold and bonds

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Money Game@MoneyGame

1Lun

If you think so, you can sell the AI stocks and go into more broadly diversified ETFs for the time being. That way, you'll still make a return if the market continues to run like this for a few more months, but if it crashes you'll make significantly less of a loss than if you had stayed in the AI stocks. I plan to do the same with a few crypto and leveraged products that I have in my portfolio.

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Francisco Rafael@Diavalboy

1Lun

Maybe it would make sense to sell part of your AI/tech positions and look for undervalued sectors that have lost the spotlight since everyone’s obsessed with AI.
Historically, bubbles are often followed by rotations into more traditional/defensive sectors, so adding some defensive stocks could help balance your portfolio.

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José@Balance_seeker

1Lun

You're quite right. I lived through the dot-com bubble in 2001, and all the signs are there.
Everyone is rushing into AI (just like they rushed into dot-com back then). It was a disruptive revolution, just as AI is now—but only 1 in 10 of the wannabe big players survived. All the hype is repeating itself, 25 years later.
The real question isn't IF it will burst—it's WHEN. And will our assets take 5 years to recover, just like they did back then? After the dot-com crash, it took the NASDAQ until 2015 to fully recover to its 2000 peak. That's 15 years. Those who bought at the top in 2000 had to wait a decade and a half just to break even.
History doesn't repeat itself, but it often rhymes. The parallels are uncanny: the euphoria, the "this time is different" narrative, the sky-high valuations based on future promises rather than present profits. We've seen this movie before. I guess gold and utilities won't get the big hit , but i would be starting to avoid tech

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PikaPika0105@PikaPika0105

1Lun

I think there will be a moment of honesty. Who is creating real business profits with AI and who has just started some pointless projects with the heading AI. Then there will be sifting out and that will be painful, but here it is important to look at the individual company and not the industry as a whole.

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KingC@RaphGM

1Lun

If you're diversified and invested for the long term, the only exit strategy you need to worry about is retirement 😉

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ChrisKay@ChrisKay

1Lun

@RaphGM Many of my positions are buy & hold with retirement in mind. This is more about my short and medium-term trades.

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KingC@RaphGM

1Lun

@ChrisKay Why do you trade $GOOG, $MSFT or $NVDA?

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ChrisKay@ChrisKay

1Lun

@RaphGM Let's put it this way, I have now set several stop prices for the companies and would sell tranches to take profits. However, I would then keep a basic stake in each of these shares. I see extreme bubble risks with $GOOGL and $MSFT, as they have quite diversified business areas. $NVDA the risk is somewhat greater.

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TheWorst@TheWorst

1Lun

Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.

- Peter Lynch

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Investor@investingbeginner

1Lun

I don't think we are in an AI bubble, but some stocks are overvalued alot and probably if we crash they won't go to that level again

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NEWT@SteelAnacott

1Lun

For years, I have invested almost exclusively in blue chips in this area, which I plan to hold for decades. As a result, my book profits are correspondingly high. I am currently planning an exit strategy for my retirement at the earliest.

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Wif@salvo89ari

1Lun

AI bubble! Where did you read that please - on TV or in the newspaper? 😂😂😂
The biggest companies in the world use AI every day,
they hardly hire any more staff because AI is taking over their work -
and you're seriously telling me there's an AI bubble? 😂😂😂

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AkeOSelman@AkeOSelman

1Lun

@salvo89ari Yes. There are many objective voices speaking out against overheating. Nobody is panicking here. We just want to discuss things objectively. Thank you.

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Stephan K.@StrahlemannLP

1Lun

That depends on your personal feelings. If you are really worried that there is an AI bubble (this cannot be swept off the table), then you should think about having the titles stopped.

For everyone there is a pain point, when that is reached you want to see money. Agree this with yourself and your conscience and set appropriate stop orders with your provider.

Or, if in doubt, you can laugh about a possible crash and be happy that your favorite stocks are cheaper than they have been for a long time and then add month after month and sit it out.

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Nom@user28461

1Lun

if it pops, buy more!

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Waxman@Waxman

1Lun

@user28461 but release cash if you like and are fully invested

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Johannes🦅🔥@Johannes001

1Lun

Why so emotional? Going out is secondary! Long term is WIN!

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market_whizkid_2475@market_whizkid_2475

1Lun

We don't know when, nor if, the AI bubble will burst. Trying to time it is pointless.

The only thing yku can do is try and diversify your portfolio with non tech stocks or etfs that are less overweighted on the sector(like ZPRV). Adding some gold and bonds helps too.

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Gennaro@Genna

1Lun

As long as people are so cautious I'm not worried about a bubble. Yes there are overvalued stocks, but only because of the future, there are still enough companies that are cheap, if I think one of my stocks has priced in too much then I just rotate the money into a less priced stock with or without AI. I also try to build up cash when the market rises through dividends and the cash flow from my work and then buy when opportunities arise during setbacks.
The bubble only arises when companies start to miss expectations and the shares rise anyway, if that were the case we should be happy because then we would have time to get out, which would be too nice a scenario for us who deal with the market on a daily basis. It usually happens suddenly and rapidly.

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Imi@Kay88

1Lun

I would say stop prices, if it goes down drastically you would still be somewhat hedged

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KryX_DE@KryX_DE

1Lun

If you think it's a "bubble", I wouldn't invest at all if I were you.

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ChrisKay@ChrisKay

1Lun

@KryX_DE As mentioned in the many comments, there are technical indicators that point to a bubble forming. The trend will continue with or without a bubble, which is why everyone is riding the wave and trying to generate profits.

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Lum0k@Lum0k

1Lun

Set an SL, then you will stay invested if the AI hype continues.

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K@TechNav

1Lun

Trailing stop loss for equities: 20-25% For indices/ETFs: 12-18%

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Matt@MattD

1Lun

OpenAI now has around 700 million weekly users, which corresponds to around ten percent of the world's adult population. In Nov 23 it was 100 million. The billion mark will probably be reached by the end of 2025. There are also a few other use cases for AI. Think a few more data centers will be built 😅

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Matzke@Matzke

1Lun

If I suspect strong declines, I sell the riskiest stocks and start making money with factor shorts on Nasdaq etc.. This happened again yesterday. Yes - I've already burned a lot of money with it, but I've also won a lot!

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AI bubble: exit strategies