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Tesla CEO (TSLA) Elon Musk is back again, pushing one of his boldest claims about the AI boom, in which the technology might eventually make work optional.Musk first made that prediction at the U.S.-Saudi Investment Forum. Sitting alongside Nvidia CEO Jensen Huang, Musk told the crowd, “My prediction is that work will be optional.” Now Musk is doubling down. According to Business Insider, citing a back-and-forth on X, Musk said AI and robots could create enough abundance to support a “universal high income.”Michael Burry quickly pushed back, though, suggesting the road to that future could be far more chaotic than Musk’s vision implies.For perspective, “The Big Short” investor Michael Burry, famous for calling the 2008 housing crash, has effectively turned his old bubble playbook on the AI trade.The pushback began with Burry arguing that AI spending has gone too far, likening Nvidia to Cisco in the dot-com era, and later filings revealed bearish bets on Nvidia and Palantir, according to Yahoo Finance. Most recently, The Wall Street Journal said Burry called the new AI shorts the “beginning of the end”, while TheStreet reported he shorted memory giant Micron after citing “fear of missing out” and “greater fool theory” in the rally. Nevertheless, the key tension here is whether AI becomes the engine of a richer future or first delivers the kind of economic shock markets are not fully pricing in.Musk’s AI promise meets Burry’s transition warning Elon Musk went beyond the debate over AI as a productivity tool and described a scenario in which labor itself becomes less central to survival.More Wall Street:Wall Street has a new problem, and it’s not the technologyWall Street’s biggest banks just landed the AI IPO of the yearWall Street’s top analysts just doubled down on 3 stocksMusk wrote on his X account that,“AI+Robots will be able to do everything, resulting in universal high income. Work will be optional.”Michael Burry’s reply was blunt: “False. There will be revolution first.”Musk doubled down on the end state, in which AI and robotics could drive costs down so sharply that food, housing, utilities, healthcare, and other essentials become cheaper. In that version of the future, government support moves beyond basic income toward a broader, more robust safety net.Burry is challenging the road to get there.He argues that the transition could potentially break before the promised abundance arrives. If millions of workers are displaced faster than companies, governments, and communities can absorb, the result might be anger before comfort and instability before leisure.Related: Elon Musk and Tesla announce serious AI changes for workersIt’s important to note that Burry has also said he is shorting Tesla, according to Yahoo Finance, while describing Musk as an American treasure but an aggressively incentivized futurist. Moreover, Burry is not the only one sounding the alarm about the transition.According to Yahoo Finance, billionaire and legendary investor Ray Dalio warned that AI could deepen wealth inequality and heighten the risk of internal strife if the gains are not redistributed. On the flipside, according to Fortune reporting, JPMorgan CEO Jamie Dimon offered the more optimistic version, saying AI could eventually shorten the workweek and improve lives.He warned, though, that companies and governments might need to effectively reskill workers quickly, or the labor-market shock could arrive first. 

 Elon Musk’s AI jobs forecast is facing a sharp labor-market warning.Marc Piasecki/Getty Images

The evidence undercuts the ‘AI replaces everyone’ panicAccording to the ILO-NASK 2025 index, about one in four jobs worldwide could be transformed by GenAI rather than automatically eliminated.According to PwC’s 2026 AI Jobs Barometer, AI-skilled workers now command a 62% wage premium, indicating rising demand for human-AI skills.According to BCG, 50% to 55% of U.S. jobs may be reshaped by AI, with many workers staying in similar roles. According to the World Economic Forum, AI-era disruption could create 170 million jobs and displace 92 million, a net gain of 78 million by 2030.According to Microsoft, 78% of leaders are considering AI-specific hiring, including AI trainers, agent specialists, and ROI analysts.According to Forbes, Ford rehired 350 veteran engineers after AI tools fell short in producing high-quality work.
Source line: ILO-NASK, PwC, BCG, World Economic Forum, Microsoft, Fortune/Bloomberg, and Forbes/Bloomberg.
The AI bubble warning is really a funding-chain warningThe big AI-bubble risk at this point has everything to do with whether the debt-funded buildout can earn enough cash before financing conditions tighten. According to MarketWatch, AI-linked corporate bonds sold off this week as Amazon moved to borrow another $25 billion, with Microsoft, Alphabet, Meta, Oracle, and Nvidia together holding more than $460 billion in outstanding debt and nearly $100 billion in issuance planned for 2026 alone. Moreover, Barron’s separately reported that $236 billion of AI-related debt had been raised globally through May, about four times the 2025 level.OpenAI in particular becomes a symbolic pressure point. According to Reuters, OpenAI is targeting nearly $600 billion in compute spending through 2030, while popular tech critic Ed Zitron, citing leaked financials, said OpenAI posted $13.07 billion in 2025 revenue against $34 billion in costs and expenses, with losses piling up sharply.More Wall Street:Wall Street has a new problem, and it’s not the technologyWall Street’s biggest banks just landed the AI IPO of the yearWall Street’s top analysts just doubled down on 3 stocksAt the same time, Oracle is taking the AI circular financing debate to the next level by ramping up AI capex toward $95 billion in fiscal 2027 and planning nearly $40 billion in debt and equity financing, according to Reuters.Reuters has also noted private-credit AI loans may have nearly doubled, while Morgan Stanley estimates private credit could fund over half of the $1.5 trillion data-center buildout through 2028.Related: Goldman Sachs revamps SpaceX stock price target for 2026

Marvell Technology (MRVL) has been one of the best trades in the AI boom. The stock rose more than 220% over the past year as data centers continued to buy its custom chips and optical components.Lately, the stock has cooled, slipping to around $230 after pulling back from its highs.Now, one investor says it’s time to slow down. He is not predicting a crash. His point is simpler: Even a great company can be a bad buy if you pay too much for it.For anyone still holding Marvell, that raises one question. Has the stock already had its big run?Why one 5-star investor moved Marvell to the sidelinesThe call comes from an investor who goes by the pseudonym Bay Area Ideas, or BAI. He is a 4.73-star member of the TipRanks community with an average return rating of 18.40%. According to TipRanks, he cut Marvell to a hold while keeping Broadcom (AVGO) at a buy.More AI Stocks:Broadcom insider unloads an eye-popping number of shares5-star analyst sets jaw-dropping AMD stock price targetTop analyst strongly resets AMD stock price targetMarvell still has a strong business, but BAI said the stock now trades above 80 times its past-year earnings. That’s up from about 30 times back in April, when he last checked it.A price-to-earnings ratio tells you how much investors pay for each dollar of profit. A higher number means bigger expectations are already built into the price.

Marvell’s custom AI chips and optical parts have fueled a huge run in the stock, but one top-rated investor now says the price has climbed too far.Comezora / Getty Images

What still works in the Marvell growth storyBAI still likes Marvell.Marvell topped both sales and profit forecasts last quarter, and its management sees a $94 billion data center market opening up within two years.The company also projected second-quarter sales of $2.7 billion, a 35% increase from a year earlier.The demand is real. Nvidia CEO Jensen Huang recently called Marvell a possible “next trillion-dollar” chip company. That comment alone added tens of billions in market value in a single session.The catch behind Marvell’s soaring valuationThe problem is what happens when a great business meets a very high price.BAI flagged one weak spot in the numbers. Marvell’s gross margin, the slice of sales left after production costs, slipped 90 basis points from a year earlier. Related: Bank of America resets Marvell stock price targetBAI called the flag a surprise and said investors should watch for more of it.Seeing as Marvell is trading at more than 80 times past-year profits, or about 60 times analysts’ next-year estimates, the stock leaves little room for error. Any missed quarter or lost chip design could trigger a sharp drop, since so much good news is already priced in.Why the investor prefers Broadcom stock right nowBroadcom is the calmer bet of the two.Its AI revenue growth sped up from 106% to 143% in the latest quarter. Broadcom’s management projected third-quarter sales of $29.4 billion, up 84% from a year ago. The company also reported record revenue of $22.19 billion. However, the stock has still lagged. Broadcom is up about 37% over the past year, but it fell after its June earnings. This happened even as JPMorgan raised its target and pointed to more than $30 billion in AI bookings.Shares have started to recover, trading near $373 after rising about 6% on an expanded custom-chip deal with Apple.How Broadcom and Marvell stack up for buyers todayHere is the tradeoff in plain terms.What separates the two AI chip stocks:Broadcom: Up about 37% in a year; reflects faster AI growth, a software cushion from VMware, and a stock that has lagged its own results.Marvell: Up more than 220% in a year; reflects rapid revenue growth, but a valuation above 80 times past-year earnings, and a small margin dip to watch.Wall Street: Both hold a strong buy consensus, but the average targets tell different stories, TipRanks noted.At the time of the note, Broadcom’s average 12-month target of $516.91 implied roughly 43% upside, while Marvell’s $270.04 target suggested a more modest 10%. Marvell’s rapid run has since left its price close to Wall Street’s average target.What Marvell’s rating change means for your next moveOne analyst’s hold rating is not a sell signal, and it does not mean the AI trade is over.It is a reminder that price discipline still matters, even in a hot sector. A wait-and-see approach is useful here.If you already own Marvell, the case for downsizing rests on valuation, not on the business breaking down. And if you are looking to start a position, the safer entry may be the name that has not run as far. That is the whole point behind BAI’s split verdict, and why he sums it up bluntly: “Marvell is no longer a marvelous buy.”Related: Broadcom extends Apple chip deal through 2031

A “few” Federal Reserve officials said there was a case for raising interest rates in June, according to minutes released Wednesday from the central bank’s meeting last month.

The spring home-buying season hasn’t exactly been as robust as many people expected.The average 30-year fixed mortgage rate hovered around 6.5% for weeks, according to Freddie Mac data. Both inventory and home sales have been down.Real estate technology company Zillow has hope for the summer housing market, though.The company released the Zillow June Market Report on July 7, and I perked up when I saw the optimistic tone of the headline and opening paragraphs.Some have considered the 2026 home-buying season a wash, but we’re actually only a few weeks into summer. And Zillow’s data shows that the U.S. housing market shouldn’t be counted out just yet.”Like a great novel, 2026 has been a rollercoaster of emotions in terms of setback and recovery,” wrote Mischa Fisher, chief economist for Zillow Group. “June’s chapter was pointedly more upbeat than May’s, with sales 5.9% higher than a year prior, and 9.2% higher than May.”Zillow’s June housing inventory data reboundsThe Zillow May Market Report, released in early June, brought mostly bad news for homebuyers.The report cast a light on just how big of a problem inventory is for the U.S. housing market. Annual new listings had decreased by 4.1%, and overall inventory was only up 1% year over year.Housing shortage is the main reason behind the U.S. housing affordability crisis. Fewer available homes spurs competition among homebuyers, which then drives up the prices.Related: Zillow releases crucial new housing market predictionFor the most part, the June report delivered good news regarding inventory. Year-over-year new listings increased by 3%.Unfortunately, overall annual housing inventory remained fairly flat again. It only increased by 0.9%. But even that disappointment came with some positive caveats.Two noteworthy shifts took place for the first time since 2022. First, homes valued in the lowest 5% of the market had the most newly pending listings — an annual incline of 10.3%.Second, active inventory for the lowest-value tier also grew faster than any other tier, with a 12.2% yearly increase.I won’t deny that housing affordability continues to be a major national crisis. But it’s encouraging to see that more homes are available for the non-wealthy, and that eligible homebuyers seem to be taking advantage of this opportunity.

Zillow’s June Market Report shows improved affordability in the U.S. housing market.Johnce / Getty Images

Home value growth is coolingHome values are still growing, according to Zillow’s June Report. This doesn’t surprise me — in my years of reporting on real estate, I’ve learned that with occasional exceptions, property values typically increase over time.The encouraging news is that home values have barely inched up, according to the Zillow Home Value Index (ZHVI). Since June 2025, values are up by just 1.1%. The typical home value is $372,057.The monthly payment toward the mortgage principal and interest on a typical home is also down 2.5% year over year, sitting at $1,884. This calculation assumes a 20% down payment.More Housing Market:Americans face major decision with mortgage rate newsRedfin sees shift in housing market, home pricesWhy first-time homebuyers face a stacked deck right nowTypical home values have decreased in 22 of the 50 largest U.S. metro areas, according to Zillow. The cities with the largest year-over-year declines were Austin, Texas (-5.7%), Las Vegas (-3.2%), and Tampa (-2.8).The cities with the largest annual increases in June were Milwaukee, Wisconsin (5.1%), Hartford, Connecticut (5.1%), and Buffalo, New York (4.6%).More takeaways from the Zillow June Market ReportInventory is still too low. I do consider the availability of housing for lower-income buyers in June to be a win. However, inventory overall has effectively stalled, and low inventory is the primary reason behind the U.S. home affordability crisis.Homes sales have increased. In June, 381,125 homes were sold, according to preliminary Zillow data. (This number will be updated in mid-July.) The preliminary count is a 5.9% annual increase and 9.2% monthly increase, indicating that the housing market has become more active.Annual mortgage rates are down. Although Freddie Mac mortgage rates were around 6.5% in June, they were still more than 20 basis points lower than June 2025. This has resulted in lower housing costs and monthly mortgage payments than this time last year.A third of homes are selling above listing price. America may not be in a major seller’s market anymore, but plenty of houses are still going for above listing. The most recent Zillow data is from May, when 30.3% of properties sold for more than their original cost. Source:ZillowRelated: Americans face dilemma after housing market news

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TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this summer dropCoach Outlet has been leaning into all of the summer trends, and we’re loving every second of it. At the start of the season, it launched striped straw bags that put a colorful twist on a summer classic. And in its big July drop, we were graced with yet another collection that feels like the epitome of summer.When looking through Coach Outlet’s new arrivals, there was one pattern that was hard to ignore: gingham. The classic checkered pattern feels nostalgic and retro with nods to the ’50s and ’60s, all while being a summer classic. Paired with mini cherry charms, it has a picnic in the summer vibe that’s stylish, playful, and elevated all at once.Available in light blue and black gingham, the new pattern is featured on some of the brand’s customer-favorite styles, including tote bags, shoulder bags, and wallets. Check out our favorites below.City Tote Bag With Gingham Print And Charm, $189 (was $325) at Coach Outlet

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Shop at Coach OutletThe City Tote Bag is one of Coach Outlet’s bestsellers. Its large size, combined with the gingham pattern, is made for summer travels and outings. You can use it as your everyday summer bag, a personal item on a plane when you head off to a weekend getaway, or even to house your summer read and towel by the beach or pool. It’s only available in light blue gingham, and it’s available as a Medium City Tote and a mini tote bag.Mini Skinny ID Case With Gingham Print And Charm, $49 (was $95) at Coach Outlet

Coach Outlet

Shop at Coach OutletOne of the best ways to test the waters with a summer pattern is with a smaller accessory, like this mini ID case. It’s compact and can fit into bags both big and small. With two external credit card slots and an ID window, you can have the essentials ready to go. It also has a zippered top to put cash, change, and a small set of keys or lip balm inside. And, you can get it in both the light blue and black gingham colorways. Emily Shoulder Bag With Gingham Print And Charm, $149 (was $325) at Coach Outlet

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Shop at Coach OutletThe Emily Shoulder Bag might be our favorite gingham pick. The light blue pattern complements the curved silhouette perfectly, and the mini cherry bag charm is, dare we say, the cherry on top. It’s a great size for everyday wear or even travel. The short strap with a 6.75-inch drop can be held by hand, over your shoulder, or at your elbow. However, it comes with a bag strap extender that makes it a crossbody bag, adding to its versatility. The Emily Shoulder Bag works well for everyday plans and evenings out. Crafted of jacquard and smooth leather, this small shoulder bag secures with a zip-top closure and has an inside zip pocket to keep essentials organized. An adjustable strap allows for comfortable wear on the shoulder, and the removable charm adds a playful touch.As we’re diving deeper into July, there’s never been a better time to add a summer staple, like any of the new Coach Outlet gingham picks, to your collection.Shop more Coach OutletNolita 19 With Gingham Print And Charm, $119 (was $195) at Coach OutletGingham Cherry Print Silk Bandana, $51 (was $85) at Coach OutletTeri Mini Crossbody Bag With Gingham Print And Charm, $179 at Coach Outlet