A bubble may be forming, but there are still good investments in this market: Josh Brown

Although an artificial intelligence-driven bubble has emerged in the market, there are plenty of "real projects" to which investors can still confidently allocate funds, Ritholtz Wealth Management CEO and co-founder Josh Brown said Tuesday on CNBC's "Halftime Report." "Of course, there's a bubble, but … that doesn't mean there aren't real projects that are going to have world-transforming outcomes," Brown said. "You shouldn't say just because there is some speculative activity, therefore I conclude everything is speculative activity." Investors are on tenterhooks as stocks, particularly across the AI industry, continue to notch impressive growth, even as concerns mount that investors may be overestimating companies' abilities to generate revenue. The tech-heavy Nasdaq Composite remained within striking distance of its record high, though it closed Tuesday down roughly 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 report in The Information that Oracle had booked thinner-than-expected margins on sales in its Nvidia cloud business for the three months that ended in August. That article triggered fears that AI stocks are soaring — with many near all-time highs — but profits aren't necessarily poised to keep pace with the gains. "Anytime you have an environment where there's this much enthusiasm for a new technology — and there are literally trillions of dollars being spent — not all of that spending is going to have a nice ROI 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 certain names blow up, you'll see valuations contract [and] you'll see a couple of years of sluggish share price growth as we digest some of the excess," Brown said. "It doesn't always have to be the Nasdaq down 85%." DISCLOSURES: All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. 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 SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.