Is the AI trade starting to lose its luster? Nvidia (NVDA) shares fell despite posting better-than-expected second quarter results and Q3 guidance. There are also growing concerns that Big Tech companies are spending too much on developing AI products without seeing much return yet.

Radio Free Mobile Founder Richard Windsor doesn't think the AI bubble is bursting quite yet, though he concedes "we may be starting to see the beginnings of the wobbles or the concerns for causing it to burst." So what will it take for him to think the AI trade is coming to an end? "Falling valuations in private markets. That will imply is that private companies like OpenAI and so on and so forth are failing to meet their expectations and are being forced by VCs to accept lower valuations when they next raise money."

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief and here to see the full interview with Richard Windsor.

This post was written by Stephanie Mikulich.