Psychology, not technology, is driving the AI trade, says Journey 1 Advisors' Snyder on 'FOMO' trading

May 12, 2026 - 09:45

David Snyder of Journey 1 Advisors appeared on "Closing Bell Overtime" to voice his unease about the booming artificial intelligence trade. While many point to technological breakthroughs as the driver, Snyder argues that human emotion is the real engine. He specifically cited "FOMO" trading, or the fear of missing out, as a primary force pushing money into AI-related stocks.

Snyder's comments come at a time when several high-profile investors have publicly warned that the market may be inflating a bubble. The rapid rise of a handful of AI companies has created a narrow market rally, leaving many traditional sectors behind. According to Snyder, this concentration is a red flag. He believes investors are chasing momentum rather than carefully evaluating the long-term fundamentals of these businesses.

The advisor warned that when psychology overtakes technology as the main catalyst, the risk of a sharp correction increases. He suggested that the current enthusiasm may be pricing in years of future growth that might not materialize as quickly as expected. While he did not predict an immediate crash, Snyder urged caution, advising investors to look beyond the hype and consider the actual revenue and profit potential of the companies they are buying into.