Although an AI-driven bubble has emerged in the market, there are many “real projects” that investors can still allocate funds to with confidence, Ritholtz Wealth Management CEO and co-founder Josh Brown said Tuesday on CNBC’s “Halftime Report.” “Of course there is a bubble, but … that doesn’t mean there aren’t real projects that are going to have world-transforming results,” Brown said. “You shouldn’t say just because there is speculative activity, therefore I conclude that everything is speculative activity.” Investors are on tentpoles as stocks, particularly in the AI industry, continue to post impressive growth, even as concerns mount that investors may overestimate companies’ abilities to generate revenue. The tech-heavy NASDAQ composite remained within striking distance of its record high, although it closed Tuesday down about 0.7%. Oracle led a pullback in AI or AI-Adjacent companies such as NVIDIA, Western Digital and Sandisk. The move was a reaction to a news report that Oracle had booked thinner-than-expected margins on sales of its NVIDIA Cloud business for the three months that ended in August. This article has sparked fears that AI stocks are rising – with many all-time highs – but earnings aren’t necessarily ready to keep pace with the gains. “Any time you have an environment where there is this much enthusiasm for a new technology — and there are literally billions of dollars being spent — all of that spending is not going to have a pretty return on investment at the end of the rainbow,” Brown said, reflecting on the market action. He added that when the current market bubble eventually pops, it likely won’t be cataclysmic for traders. “Most of the time you’ll just see some names blow up, you’ll see contract valuations (and) you’ll see a few years of slow stock price growth as we digest some of the excess,” Brown said. “It doesn’t always have to be the Nasdaq down 85%.” Disclosures: Any opinions expressed by CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC Universal, their parent or affiliate, and may have been previously broadcast by them on television, radio, internet or other media. The content above is subject to our terms and conditions and privacy policies. This content is provided for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to purchase any security or other financial asset. The content is general in nature and does not reflect anyone’s unique personal circumstances. The content above may not be appropriate for your particular situation. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor. Investing involves risk. The analysis examples contained in this article are examples only. The views and opinions expressed are those of the contributors and do not necessarily reflect the official policy or position of Ritholtz Wealth Management, LLC. Josh Brown is the CEO of Ritholtz Wealth Management and may maintain a safe position in the stocks discussed. Assumptions made in the analysis do not reflect the position of Ritholtz Wealth Management, LLC” until the end of or our disclosure. Click here for full disclaimer.