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Best Travel Headphones for 2025

Do you have upcoming travel plans? We’ve rounded up the best noise-canceling headphones to pack for all your adventures.

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What to consider

Budget

Value can reflect quality. Consider your needs and what your budget allows.

Fit (Comfort)

Ensuring the headphones you choose fit your head help minimize any discomfort from extended wear.

Durability

Sturdy quality helps ensure your headphones hold up well over time.

Features

Premium headphones should offer best-in-class noise cancelling as well as have great microphones for phone calls.

Return Policy

Be sure to buy from a reputable retailer so you can make a return if you aren’t 100% happy with your purchase.

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Over the last 10 years, I’ve tested dozens of headphones and earbuds during my travels. My current favorite travel headphones are not only comfortable, but they also feature good sound quality and strong noise-canceling performance. True-wireless earbuds are usually a great pick for travel since they’re compact and can be easily stored in your pocket. However, they won’t connect to a wired in-flight system unless they come with a charging case that has a built-in Bluetooth transceiver like the Bowers & Wilkins Pi8 earbuds. You could also buy a separate transceiver, like the Twelve South’s AirFly Pro 2 or other similar products you can find on Amazon.

What are the best travel headphones overall?

It’s tough to pick just one model as the absolute best overall travel headphone, but the new Sony WH-1000XM6 is arguably it — for the moment anyway. For full-size over-ear noise-canceling headphones, I also like the Bose QuietComfort Ultra Headphones, Sony WH-1000XM5 and Sonos Ace, as well as the relatively lightweight Skullcandy Aviator 900 ANC and more affordable Sony CH-720N (lighter is better when it comes to travel headphones). All these models feature active noise canceling to block external noise and they’re also good for making voice calls. Plenty of great noise-canceling earbud options are also available, including the highly rated Bose QuietComfort Ultra Earbuds (2nd gen), Apple’s AirPods Pro 2 and Sony’s WF-1000XM5.

What we updated: August 2025

We added the Skullcandy Aviator 900 ANC and Bowers & Wilkins PX7 S3 to the list. We also moved the Bose QuietComfort Ultra Earbuds to the “Other top travel headpones we’ve tested” section, as Bose has released the QuietComfort Ultra Earbuds (2nd gen).

Best travel headphones of 2025

Pros

  • Upgraded design with more comfortable fit
  • Improved noise canceling and sound quality
  • New QN3 chip is seven times as powerful as QN1 chip in XM5
  • Excellent voice-calling performance with more mics
  • Improved transparency mode
  • Spatial audio with head tracking

Cons

  • $50 more than previous model
  • No USB-C audio
  • It’s not so clear how you access spatial audio

Why I like them

Over the last several years, Sony has made some of the best noise-canceling headphones on the market, so it’s a big deal when the company comes out with a new flagship model, like the WH-1000XM6, which arrives three years after the release of the WH-1000XM5. Though the XM5 was — and still is — one of the top over-ear Bluetooth headphones, there’s always room for improvement. With the XM6, Sony has fixed the small design flaws of its predecessor while bumping up the overall performance. The result is a headphone that’s arguably edged just ahead of the competition and is now at the top of its class. Read my WH-1000XM6 review.

Reasons to buy

The WH-1000XM6 are excellent for frequent travelers, remote workers and commuters who demand top-tier sound quality, noise canceling and call quality in a very comfortable headphone. If you can afford the high price, you’ll appreciate what Sony has achieved here.

Reasons to skip/keep looking

If you’re budget-conscious or already own Sony’s WH-1000XM5 headphones, you should hold off until they go on sale. They offer some significant improvements over the XM5s, but not enough to justify rushing to upgrade at full price.

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Pros

  • Design is an upgrade
  • Lightweight and very comfortable
  • Excellent sound and great noise canceling
  • Voice-calling performance is top-notch
  • Immersive Audio mode offers some sound-quality enhancements

Cons

  • Higher price than the previous model
  • No USB-C audio
  • Immersive Audio mode hurts battery life

While Bose’s new flagship QuietComfort Ultra Headphones may not be a huge upgrade over the company’s Noise Cancelling 700 headphones, they feature a more premium design along with Bose’s new Immersive Audio feature, which delivers some sound-quality enhancements. Along with excellent sound and great noise canceling, the QC Ultra Headphones are also superb for making calls, with top-notch background noise reduction. All that adds up to the best new noise-canceling headphones of 2024 and a worthy adversary to Sony’s highly rated WH-1000XM5 and Apple’s AirPods Max.

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Bose QuietComfort Ultra Headphones review

Pros

  • Relatively lightweight and comfortable
  • Not only fold flat but fold up into a nicely designed crossbody travel bag
  • Very good sound after tweaking EQ settings
  • Well-designed physical controls
  • Good noise-canceling and voice-calling performance
  • THX spatial audio with head tracking
  • Strong battery life (up to 50 hours with ANC on)

Cons

  • No USB-C audio
  • Fairly pricey
  • No support for LDAC and aptX audio codecs (AAC and SBC only)

Why I like them

We reviewed Skullcandy’s wired Aviator Roc Nation headphones all the way back in 2011. Now Skullcandy’s brought the Aviator design back in a wireless noise-canceling model called the Aviator 900 ANC headphones. They kind of surprised me because Skullcandy is better known for its Crusher headphones, which deliver bone-rattling bass but are not so-called premium-sounding headphones. However, the Aviator 900, developed in partnership with THX, deliver surprisingly impressive sound. They’re not so great out of the box, but after you make some tweaks to the EQ in the app and turn on the THX spatial audio, the sound improves dramatically and is arguably more exciting than the new Nothing Headphone (1)’s sound and more fun to listen to.

Like the Nothing Headphones (1), the Aviator 900 ANC list for $300 and have a translucent theme. However, the Aviator 900 are lighter (289 grams) and more comfortable to wear. Plus, they not only fold flat but fold up into a well-designed crossbody travel bag (you can remove the strap) and have some nifty physical control buttons. I also liked the integrated mini LED display, though its value is dubious because you can’t see it while you have the headphones on. The Aviator 900 offer good noise-canceling and voice-calling performance, though the Nothing Headphone (1) may have a slight edge in those departments. Even so, I slightly preferred Skullcandy’s headphones for their fit and sound, especially after a firmware upgrade fixed an early issue that some people experienced with the sound distorting at higher volumes.

Reasons to buy

The Aviator 900 ANC headphones offer a comfortable fit and strong overall performance in a unique, eye-catching design. They also seem to regularly go on sale for $200, which makes them significantly more affordable than the Sony WH-1000XM6 and other premium noise-canceling headphones.

Reasons to skip/keep looking

The headphones are fairly pricey, so you may want to wait for them to go on sale. They’ve dipped to as low as $200 during Amazon Prime Day, and I suspect we’ll see them sporadically discounted to near $200 as we head into the holiday buying season.

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Pros

  • Eye-catching, premium design is made out of premium material and is slightly slimmer and lighter
  • Upgraded ear pads for more comfortable fit
  • Upgraded biocellulose drive units powered by discrete amplifier improves the sound quality
  • Improved noise canceling and voice-calling performance with 8 microphones
  • USB-C audio for lossless wired connection

Cons

  • Premium price ($50 more expensive than PX7 S2)
  • Noise canceling isn’t quite up to the level of Sony’s and Bose’s
  • Headphones fold flat but not up (no dual-hinge)
  • At default setting, treble may be a touch too aggressive (forward) for some folks

Why I like them

Bowers & Wilkins PX7 S3 technically aren’t the company’s flagship headphones (the PX8 are), but they’re arguably better than the more expensive PX8s, offering improved sound quality and superior noise canceling in an upgraded, slimmer design (300 grams) that fits my head more comfortably. The drivers aren’t the same as the PX8’s carbon cone drivers, but the redesigned 40mm biocellulose drive units have an improved chassis, voice coil, suspension and magnet that, according to B&W, deliver “lower coloration and distortion, improved resolution and superior dynamics.” Additionally, for the first time in a set of B&W headphones, the drive units are powered by a dedicated, discrete headphone amplifier that provides more “scale and energy to the sound.” I did think their sound was more revealing and open compared to the earlier S2e, and they are more exciting and fun to listen to. At the default setting, the treble may be a touch aggressive for some folks (a tad too much sizzle), which can lead to some listening fatigue. But you can play around with the five-band equalizer in the companion app for iOS and Android to smooth things out and give the headphones a slightly warmer sound.

While these are pricey headphones, at least they look like premium headphones and are made with premium materials. In my tests in the noisy streets of New York, I found that the noise canceling is significantly improved — it’s better than PX8’s — though it’s not quite up to the level of what you get with Sony’s and Bose’s flagship noise canceling headphones. I also thought the voice-calling performance has been upgraded — the headphones have eight microphones total, four in each ear cup.

While callers said that the background noise reduction wasn’t quite as good as what they heard when I was talking to them on Sony’s WH-1000XM6 headphones, they said they could hear my voice well with minimal background noise.

It’s also worth noting that these headphones have USB-C audio for a lossless wired connection (and they also come with a 3.5mm analog cable that stows away nicely in a compartment inside the headphone’s hard case). Android users should note that they have support for Qualcomm’s aptX Adaptive and aptX Lossless audio codecs that can help improve sound quality when listening wirelessly over Bluetooth to high-resolution tracks from music streaming services like Tidal, Amazon and Qobuz. However, very few mainstream Android smartphones support aptX Adaptive or Lossless (more support Sony’s LDAC audio codec).

Reasons to buy

The sleekly designed, swanky Bowers & Wilkins PX7 S3 are excellent noise-canceling headphones that are a clear improvement over their predecessor. That said, the biggest reason to buy these over Sony’s WH-1000XM6 headphones, which carry the same list price, is that you like their look better. They also feature USB-C audio, while the XM6 doesn’t.

Reason to skip/keep looking

From an aesthetic standpoint, I prefer the design of the PX7 S3 to the Sony WH-1000XM6’s. But I can’t say the PX7 S3 is any more comfortable or sounds better; I slightly preferred the sound of the Sony, in fact. And the Sony offers slightly better noise canceling and voice-calling performance, along with some extra features such as Speak-to-Chat and Quick Attention mode. If you already own the earlier PX7 S2e, it’s probably not worth shelling out full price for PX7 S3. The same is true if you own Bowers & Wilkins’ flagship PX8, which could get the S2 treatment in 2025. The PX7 S3 sounds more exciting than the PX8, but it’s debatable whether it sounds better. I would give the slight nod to the PX8, but that’s just my personal taste.

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Pros

  • More refined sound and even better noise canceling
  • Slightly more comfortable
  • Best-in-class voice call quality
  • Robust feature set

Cons

  • Higher price tag than the previous model
  • Larger carrying case (headphones fold flat but not up)

When you have a product that a lot of people love, change can be risky. Such is the case for Sony’s WH-1000XM5, the fifth generation of the 1000X series headphones, which were first released in 2016 as the MDR-1000X Wireless and have become increasingly popular as they’ve improved with each generation.

Over the years, Sony has made some tweaks to the design, but nothing as dramatic as what it’s done with the WH-1000XM5. Other than the higher price tag, most of those changes are good, and Sony’s made some dramatic improvements with voice-calling performance, as well as even better noise-canceling and more refined sound.

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Sony WH-1000XM5 review

Pros

  • Well-designed and comfortable
  • Excellent sound and noise-canceling
  • Strong voice-calling performance
  • Spatial audio with head-tracking
  • USB-C audio
  • TV Audio Swap feature for Sonos users

Cons

  • Pricey
  • Not Wi-Fi headphones
  • TV Audio Swap feature only works with Sonos’ Arc sound bar at launch (and can be glitchy)

Why I like them

A lot of people expected Sonos’ first headphones to be able to stream lossless audio over Wi-Fi in your home and then use Bluetooth outside your Sonos home network. However, Sonos reps told me that listening to music over Wi-Fi would greatly reduce the headphone’s battery life and the company opted to leave that feature off. So even though they’re equipped with a Wi-Fi chip so you can tap into a Sonos sound bar at home for private late-night viewing (Sonos refers to this as the TV Audio Swap feature), they’re not really Wi-Fi headphones and are first and foremost noise-canceling Bluetooth headphones — and I was mostly quite impressed by them. Read my Sonos Ace review.

Sleekly designed, at 312 grams, they’re not as light as the 254-gram Sony WH-1000XM6s or the 253-gram Bose QuietComfort Ultras, but they’re considerably lighter than the 385-gram AirPods Max and I found them quite comfortable to wear, with a relatively small gap between the headband and my head (they hugged my head nicely with just the right amount of clamping). I also appreciated tat their chrome metal yoke allows the headphones to swivel in multiple directions — the hinge is hidden – and the ear cups adhere magnetically like they do on the AirPods Max and are replaceable, which is good.

All in all, the Sonos Ace headphones perform very well across the board with strong noise canceling, excellent sound quality and very good voice-calling performance. Well balanced, they’re clean sounding with nice detail and sparkle in the treble along with punchy, powerful bass that doesn’t get boomy. Vocals sounded natural and the headphones have a relatively wide soundstage. It’s also good to see that the headphones have USB-C audio support (wired listening with a USB-C cable) and spatial audio with head-tracking.

Reasons to buy

The Sonos Ace are one of the top noise-canceling headphones on the market, rivaling flagship models from Sony, Apple and Bose. Now that they’ve been out for more than a year, we’re seeing some good discounts on them, which makes them a better value, and a potential alternative to Sony’s new WH-1000XM6 headphones. While you don’t have to be an owner of Sonos speakers to buy them, Sonos soundbar owners can leverage the TV Audio Swap feature for private late-night viewing (the Ace delivers virtual surround sound in this mode).

Reasons to skip/keep looking

You can make the argument that Sony’s new WH-1000XM6 are slightly better overall for around the same price (I’m talking list price — and yes, they’re too pricey for some folks). But with the Ace selling for as low as $330, they’re an easier sell.

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Sonos Ace review

Pros

  • Lightweight and comfortable
  • Good sound with very good noise canceling
  • Good voice-calling performance
  • 35 hours of battery life

Cons

  • No carrying case
  • No ear-detection sensors
  • No LDAC audio codec support

Why I like them

Sony’s improved entry-level noise canceling headphones, the CH-720Ns, have a bit of a plasticky budget vibe, but they’re lightweight (only 192 grams) and very comfortable. Part of me was expecting them to sound pretty mediocre, but I was pleasantly surprised, as these headphones offer good overall tonal balance with punchy bass, decent clarity and a fairly wide soundstage (the headphones are suitable for a variety of music genres. They also offers decent noise canceling and good voice-calling performance.

No, they don’t sound as good or perform as well as Sony’s WH-1000XM5 or new WH-1000XM6 headphones. But they sound more premium than they look — and feel — and their overall performance is a step up from their predecessor, the CH-710Ns. Are they worth $150? Maybe — or maybe not. But the good news is that, like the CH-710N and WH-XB910 before them, these frequently are discounted to closer to $100, which makes them a good value.

Reasons to buy

Budget-conscious buyers seeking Sony quality at an accessible price point will find these offer a significant step up from truly entry-level headphone options.

Reasons to skip/keep looking

The main reason not get these is that you simply want a more premium noise-canceling headphone that not only offers better build quality but better overall performance along with more advanced features like ear-detection sensors, LDAC audio codec support and Sony’s Quick Attention and Speak-To-Chat features. Sony also leaves out any sort of carrying case or pouch with these headphones, which is slightly disappointing.

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Sony CH-720N review

Pros

  • New smaller design
  • Improved sound, noise canceling and voice calling
  • Upgraded processors and drivers

Cons

  • Pricey
  • No Find My feature integrated into app

When Sony’s WF-1000XM4 earbuds came out in 2021, we awarded them a CNET Editors’ Choice. And while they’re excellent, we had some quibbles — they’re on the large side and aren’t a good match for certain ears. Clearly, Sony took those gripes to heart when it set out to design its next-generation WF-1000XM5 flagship noise-canceling earbuds. Not only are the XM5s smaller, but they also offer improved performance pretty much across the board, with better noise canceling, great sound quality and voice calling. Are the XM5s perfect? Not quite. At $300 — $20 more than their predecessor — they’re costly too. Overall they’re really impressive; among the very top earbuds on the market.

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Sony WF-1000XM5 review

Pros

  • Upgraded design
  • Very comfortable
  • Improved noise-canceling and sound quality
  • Robust feature set
  • Good voice-calling performance
  • Smart Tx audio transmitter included

Cons

  • Pricey
  • Some people may find Smart Tx audio transmitter not that useful

Why I like them

JBL’s new flagship noise-canceling headphones, the Tour One M3 Smart Tx, are a nice step up from the company’s earlier Tour One M3. Not only are the more comfortable (they weigh 278 grams and have an upgraded ear cup design), but they feature better noise-canceling, slightly improved sound quality and good voice-calling performance. The headphones also come with an accessory that isn’t included with competing premium noise-canceling models: the JBL Smart Tx audio transmitter, which enables you to wirelessly deliver audio to the Tour One M3 from any USB-C or analog audio source such as an inflight entertainment system, PC, tablet or television. It has a touchscreen LCD that allows you to control the Tour One M3’s features, including music playback, call management and EQ Settings JBL says the Smart Tx — it’s rated for up to 18 hours of battery life — also has the ability to broadcast any audio source to an unlimited amount of Auracast-enabled devices.

JBL’s previous two Tour One models fell a little short of Sony’s and Bose’s premium noise canceling offerings. But its upgraded and more refined third-generation Tour One M3 headphones are more viable alternative to those models, though they would be more enticing if they were priced closer to $300. Equipped with newly designed 40mm Mica Dome drivers, the sound is well-balanced and dynamic, with well-defined bass and some sparkle in the treble. The mids, where vocals live, could sound a tad more natural and clear, you can make some tweaks to those aforementioned EQ settings to dial in a sound profile that’s optimized for your hearing and specific musical tastes. In the end, the Tour One M3 are very good noise-canceling headphones, with a robust feature set, including JBL Spatial Sound with head tracking, 8 mics (4 on and in each ear cup) and support for the LDAC audio codec for Android devices. Their only issue is that their sound and noise canceling doesn’t rise above the competition in this price range. So, as I said, they probably need to cost a $50-$100 less for someone to choose them over Sony, Apple or Bose.

Reasons to buy

JBL’s Smart Tx audio transmitter is a distinguishing feature and the headphones are nicely design and offer very good performance overall.

Reasons to skip/keep looking

From a sound quality perspective, the Tour One M3 aren’t quite as great as some other headphones in this price range, including the Sony WH-1000XM6 and Bowers & Wilkins PX7 S3.

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Pros

  • Sound quite good for their relatively low price
  • Lightweight and relatively comfortable
  • Decent noise canceling and voice-calling performance for a budget headphone
  • USB-C audio (and wired mode with included cable)
  • Support for LDAC audio codec

Cons

  • ANC cuts off in wired mode
  • No carry case or pouch included

Why I Like Them

QCY is another Chinese brand like Tribit, Earfun and plenty of others that make budget-priced headphones that sound better than you’d think they would for their relatively low price (the company says the Q stands for quality, C stands for creative and Y stands for youth). Its new-for-2024 H3 Pro headphones are similar to models in this price range from 1More, Tribit and Edifier, but they arguably sound a touch better and I found them relatively comfortable to wear, as they feature a lightweight design and memory foam ear pads.

The sound quality on these budget models tends to vary a bit from track to track. While I encountered some occasional distortion on badly recorded material and the treble just can’t produce the clarity and detail that you get with more premium headphones, all in all, the sound quality was quite respectable. The noise canceling also is fairly decent — there are a few different modes to choose from in QCY’s companion app for iOS and Android, which has a low-frills-looking interface but is robust enough under the hood — and callers said the voice-calling performance was also good, especially given the price of these headphones.

You do get multipoint Bluetooth pairing that allows you to connect two devices simultaneously (you have to activate it in the app), but features like wear sensors that pause your music when you take the headphones off are missing. Also, you can set the headphones to automatically turn off after not being in use for a certain amount of time (I set it for 15 minutes), but the headphones turned off in the middle of a long call I was making, not seeming to realize that I was using the headphones. The H3 Pro are decent value for the cost, particularly when their price dips closer to $50.

Reasons to buy

Like the handful of other budget headphones I recommend, the QCY H3 Pro are better than you’d think they’d be for their modest price in terms of both design and performance.

Reasons to skip/ keep looking

If you’re a critical listener, these probably aren’t for you as these headphones occasionally distort audio and lack the treble clarity found in higher-end models. Also, it’s too bad they don’t come with any sort of carrying pouch and noise cancelling isn’t available when using the cable for wired listening (you’d kind of want noise canceling if you watching a movie on a plane plugged into your seat’s inflight entertainment system).

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Pros

  • Significantly improved sound and noise canceling
  • Better battery life and upgraded microphones
  • Powered by Apple’s new H2 chip

Cons

  • Basically the same design as previous model
  • No high-resolution audio

The AirPods Pro (2nd generation) are powered by Apple’s new H2 chip, which delivers more processing power while being more energy efficient, according to Apple. The new chip, combined with new low-distortion drivers, allows for improved sound that offers better clarity and depth. The noise canceling is also improved — Apple says the new AirPods have “double” the noise canceling of the original AirPods Pro. Additionally, the new AirPods add an extra hour of battery, up from five to six hours with noise canceling on. Plus, a speaker in the case that emits a sound that helps locate your buds via Find My should they decide to hide from you.

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Apple AirPods Pro 2 (USB-C) review

Pros

  • Significantly improved sound quality with better clarity, definition and tighter bass
  • Durable, seamless faux-leather earpads for excellent comfort and acoustic seal
  • Improved noise canceling and more natural sounding transparency mode
  • Very good voice-calling performance
  • Spatial audio with head tracking for Apple users
  • USB-C audio for lossless wired listening

Cons

  • Uses custom Beats chip rather than Apple’s H2 chip (limits future feature upgrades)
  • No ear-detection sensors to automatically pause/resume audio
  • USB-C listening mode disables noise cancellation and transparency features

Why I like them

Love ’em or hate ’em, Beats Studio headphones are among the most popular headphones of all time, launching as a wired headphone back in 2008. This is the fourth generation of them, and they carry the same list price as their predecessor and look very similar on the outside but have some big changes on the inside that make them significantly better headphones. I’m tempted to describe them as more affordable plastic versions of the AirPods Max. However, that’s not quite accurate due to a choice in chipsets and one notable missing feature. But read my full review to find out what makes this a very good headphone with some small caveats.

Reason to buy

The Studio Pros are the best Beats over-ear headphones, geared toward both Apple and Android users. Android users get multipoint Bluetooth pairing with automatic switching between devices linked to your Google account, while Apple users link to their iCloud account but have to manually switch between devices. For Apple users, there’s spatial audio with head tracking when watching videos and hands-free Siri access. IThose who prefer a more exciting, forward sound signature over more laid back options will find these appealing, and they should work well with a variety of music genres.

Reason to skip/keep looking

The one big miss here is the lack of ear-detection sensors — most $350 over-ear headphones have this feature, meaning your music doesn’t automatically pause when you take the headphones off. I also think it was a mistake for Beats not to power these with Apple’s H2 chip, as going forward you won’t get feature upgrades designed for that chip. Android users don’t get spatial audio with head tracking or hands-free Siri. 

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Beats Studio Pro review

Pros

  • Good value
  • Comfortable fit
  • Good sound for their low price
  • Decent noise-canceling and voice-calling performance

Cons

  • ANC disabled when in wired mode
  • Lacking a bit of clarity

Why I like them

Earfun has made some very solid budget earbuds, and now it’s entered the full-size ANC headphone space with a few different over-ear models, including the Wave Pro (add the code EWPROCNET at checkout on Amazon to receive an additional 10% off). While they may not sound as good as premium noise-canceling headphones from Bose or Sony, they’re comfortable to wear, feature decent sound with punchy bass (they’re a bit lacking in clarity and bass definition compared to more expensive models), and they offer respectable noise canceling (you can toggle between two levels of ANC) and voice-calling performance. The headphones do come with a cable for wired listening — you can plug into an inflight entertainment system — but the noise canceling cuts off when you’re in wired mode, which is unfortunate.

Reasons to buy

For less than $60, you’re getting decent sounding headphones with effective noise canceling that are comfortable to wear and have long battery lfie. They’re also one of the few budget headphones that come with a carrying case.

Reasons to skip/keep looking

If you’re a critical listener, these probably aren’t for you as these headphones lack the treble clarity and bass definition found in higher-end models.

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Pros

  • Lightweight and comfortable
  • Very good sound and noise canceling
  • Good voice-calling performance
  • Headphone cable now has integrated microphone

Cons

  • Mostly the same as previous model but costs $50 more

Why I like them

When Bose released its new flagship QuietComfort Ultra Headphones in late 2023, it also replaced the QuietComfort 45s with a new, slightly updated model simply called the QuietComfort Headphones. Like the QC 45s, this model carries on the very comfortable tried-and-true legacy QuietComfort design that’s been around for a few generations that a lot of people continue to love. The QC Ultra Headphones add Bose’s new Immersive Audio feature and have a more refined design with some metal parts (they also have Bluetooth 5.3 instead of Bluetooth 5.1). But the QuietComfort Headphones still feature very good sound (the Ultras offer a small step up in sound quality), excellent noise canceling and strong voice-calling performance.

As for differences between these and the QC45s, Bose says it adjusted some of the electronics to improve battery life (now 24 hours vs. 22 hours) and adjusted the logos to make the products “visually distinguishable and more in line with its latest design language.” It also added an inline microphone to the auxiliary cable to “help with some users who may prefer a plug-and-play solution rather than Bluetooth pairing.” There’s also a Wind Block feature and some additional small performance improvements due to software upgrades. Finally, the headphones come in several new color options, including pink. Some colors may only be available at bose.com.

Reasons to buy

If you’re a fan of Bose’s earlier “iconic” headphones design starting with the QC35 (or maybe even the QC25), this is the Bose headphone for you. Cheaper than the QuietComfort Ultra Headphones, they also regularly go on sale for $250 or less, marking them a more attractive value.

Reasons to skip/keep looking

The QuietComfort Ultra Headphones are better headphones overall with improved all-around performance and a more premium design.

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Pros

  • Well-designed and comfortable to wear
  • Good sound quality and noise-canceling performance
  • Strong feature set
  • Strong battery life

Cons

  • Voice-calling suffers in windy environments

Why I like them

The well-designed and comfortable JBL Live 770NC offers some modest improvements over its predecessor, including better battery life (up to 65 hours with ANC off and 50 hours with ANC on) and Bluetooth 5.3 with LE Audio (via a future firmware upgrade). Equipped with 40mm drivers, you get bold, nicely defined sound with powerful bass that’s relatively tight. JBL’s Ambient Aware and TalkThru features are on board along with multipoint Bluetooth pairing (the one feature that’s missing is ear-detection sensors that pause your music when you take the headphones off). I thought the headphones’ noise muffling capabilities were good and callers said they could hear me well even in noisier environments except when the wind picked up around me. The headphones fold up and a simple carrying pouch (no hard case) is included along with a cable for wired listening.

Reasons to buy

If you can’t afford premium noise-canceling headphones from Bose, Sony and Apple, the JBL Live 700NC are a good alternative, offering good performance for a more modest price.

Reasons to skip/keep looking

These are easier to recommend when they’re on sale for less than $200 (or even less). They’re a bargain in the $150-$170 range.

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Pros

  • Great sound
  • Smaller design with improved fit
  • Improved noise canceling
  • Smaller case transforms into a Bluetooth transceiver (it also has wireless charging)
  • Very sensitive touch controls

Cons

  • Expensive
  • Some other premium earbuds have superior ANC and voice-calling performance

Why I like them

Simply put, the Pi8s are fantastic-sounding earbuds that also benefit from having a clearly improved design from the Pi7 S2 and Pi5 S2. It’s debatable whether the Pi8s sound $150 better than the step-down Pi6s, but there’s no doubt these are some of the best-sounding earbuds on the market, if not the best (everybody’s sound tastes vary so it’s hard to declare one set of buds the best-sounding overall). 

Like with the Pi7 S2, sound quality is the highlight here, along with the charging case’s ability to transform into a Bluetooth transceiver. Noise cancellation seems improved, and noise reduction during calls seems better, but the voice-calling performance wasn’t as good as what I got with Apple’s AirPods Pro 2 and Samsung’s Galaxy Buds 3 Pro.

Reasons to buy

The Pi8 are easily among the top earbuds for sound quality with refined, spacious sound and deep, well-defined bass. Also, their noise-canceling and voice-calling performance has improved from their predecessor, making them better earbuds all around. And lastly, that their case turn into a Bluetooth transceiver is a nice feature for frequent travelers who want to use their wireless earbuds with an inflight entertainment system.

Reasons to skip/keep looking

The Pi8 are pricey earbuds that will be out of a lot people’s price range. And while models like the AiPods Pro 2 may not feature as impressive sound quality, they do offer slightly better noise canceling and voice-calling performance (and some other extra features) and cost less.

 … Show more
Learn more

Bowers & Wilkins Pi8 review

Pros

  • Excellent sound
  • Improved noise canceling and voice-calling performance
  • Impressive battery life
  • Good sound personalization features

Cons

  • Ho-hum design
  • Noise-canceling isn’t as good as Sony’s or Bose’s

Why I like them

Sennheiser’s previous-generation Momentum Wireless headphones have always had a pretty distinct look that was part retro, part modern and stood out for the exposed metal on their headband. For better or worse, that’s all gone now, and the new Momentum 4 Wireless, Sennheiser’s flagship noise-canceling headphones, look a bit more subdued and also a bit more like some of their competitors.

The Momentum 4 Wireless offers superior performance over the Momentum 3 Wireless in every regard, although the biggest gains are with noise canceling and voice-calling performance as well as battery life, which is outstanding — up to 60 hours at moderate volume levels. There’s also a transparency mode that allows ambient sound in, and they have the ability to create a custom sound profile in the Smart Control app for iOS and Android using the built-in EQ, sound modes and a new Sound Personalization feature that “assesses the user’s listening preferences and adjusts the listening experience according to their taste.” 

Equipped with 42mm drivers, Sennheiser says the Momentum 4 Wireless offers “best-in-class” sound, which is debatable. I’d say the Momentum 4’s sound quality is right there with other models in this price range — they sound excellent, with the requisite well-defined, punchy bass, relatively wide soundstage (they sound pretty open) and smooth treble that brings out some of the finer details in well-recorded tracks. They’re a pleasure to listen to.

Reasons to buy

The Momentum 4 Wireless costs less than flagship models from Sony, Bose and Apple and offer excellent sound and good build quality.

Reasons to skip/keep looking

While I’m fan of the Momentum 4 Wireless and like their sound a lot, they’re noise canceling and comfort level isn’t as good as what you get from the Bose QuietComfort Ultra or Sony WH-1000XM5 or WH-1000XM6.

 … Show more
Learn more

Sennheiser Momentum 4 Wireless review

Factors to consider when choosing travel headphones

Budget

Before anything else, you’ll want to figure out how much you’re willing to spend on new travel headphones. The quality of value-priced noise-canceling headphones continues to improve, so you can find good affordable headphones for less than $100. The premium models, which offer better build quality and performance, tend to cost $200 or more — sometimes much more. 

Fit (comfort)

It’s key that the travel headphones you buy fit your head well. They should offer a comfortable fit that’s snug yet not too snug. Ideally, you want headphones you can wear over a day with minimal breaks.

Durability

You want travel headphones that hold up well over time, so look for models that we note have sturdy build quality.

Maximize performance and features for your budget

You want the best-sounding headphones with the best noise-canceling, call quality and features for whatever fits your budget.

Return policy

It’s critical to buy your headphones at a retailer that has a good return policy, in case you have buyer’s remorse. Some people who are having trouble deciding between two models sometimes buy both, try them out for a few days and then return one.

How we test travel headphones and earbuds

We test travel headphones and earbuds based on six key criteria. These criteria include design, sound quality, noise-canceling performance, voice-calling performance, features and value. 

  • Design: Evaluating design, we assess not only how comfortable the headphones and earbuds fit (their ergonomics) but their build quality and how well the controls are implemented. When it comes to earbuds, we also look at water- and dust-resistance ratings. 
  • Sound quality: We evaluate sound by listening to a set playlist of music tracks and comparing the earbuds to top competing products in their price range. Sonic traits such as bass definition, clarity, dynamic range and how natural the headphones sound are key factors in our assessment.
  • Noise-canceling performance: We evaluate noise-canceling performance by wearing headphones in the same spot indoors near a noisy HVAC unit to see how well they do at muffling lower frequencies. Then we head out to the streets of New York to test the headphones in a real-world environment where we see how they do at muffling not only street noise but people’s voices. 
  • Extra features: Some great-sounding noise-canceling headphones and earbuds aren’t loaded with features, but we do take into account what extra features are on board. These include everything from quick-access awareness to transparency modes (your music pauses and the headphones open up to the outside world so you can have a conversation) to special sound modes to ear-detection sensors that automatically pause your music when you take the headphones off your ears. We also take a look at the companion app for the headphones if there is one and how user-friendly it is. 
  • Voice-calling: When we test voice-calling performance, we make calls in the noisy streets of New York and evaluate how well the headphones or earbuds reduce background noise and how clearly callers can hear our voices.
  • Value: We determine value after evaluating the strength of the headphones and earbuds against all these criteria and what they’re able to deliver compared to other models in their price class. 

Other travel headphones we tested

Bose QuietComfort Ultra Earbuds: Bose has released its improved QC Ultra Earbuds (2nd gen), which means you’ll be able to find discounts on the original QC Ultra Earbuds. They feature excellent sound and previously best-in-class noise-canceling performance.

Jabra Elite 8 Active Gen 2: Jabra billed these earbuds, which have unfortunately been discontinued, as the “world’s toughest earbuds,” and based on our tests (they survived several drops without a scratch), that may very well be true. While there are two new color options, the Gen 2 model doesn’t look any different from the original, but it includes an LE Audio smart case which allows wireless streaming from any device with USB-C or 3.5mm port. I tested it with inflight entertainment and it worked well, with no audio lag. The Elite 8 Active Gen 2 also feature enhanced spatial sound powered by Dolby Audio “for a better music experience,” enhanced Natural HearThrough for better awareness when outdoors and improved noise-canceling performance.

Beats Fit Pro: While the Beats Fit Pro technically aren’t AirPods, they’re built on the same tech platform as the AirPods Pro (yes, Apple owns Beats). Unlike Beats’ earlier and less expensive Studio Buds and new-for-2023 Studio Buds Plus, the Beats Fit Pro include Apple’s H1 chip and have most of the AirPods Pro’s features, including active noise canceling, spatial audio and Adaptive EQ. I’d venture to call them the sports AirPods you’ve always wanted. Learn more about the Beats Fit Pro with our hands-on review here.

JBL Live 670NC: The JBL Live 670NC is one of a relatively small number of on-ear headphones to offer active noise canceling. It’s something of a value model — no carrying case is included — but it does have memory foam ear pads that get you a comfortable fit for an on-ear headphone. Deliver clear sound with punch bass, it has 32mm drivers and improves on its predecessor’s battery life, offering up to an impressive 70 hours (or 44 hours with ANC on), and an extra three hours of battery with just five minutes of charge. This model includes the latest Bluetooth 5.3 (with LE Audio) and multipoint Bluetooth pairing. It also has JBL’s Ambient Aware (transparency mode) and TalkThru features. It’s available in black, white and blue and comes with a cord for wired listening.

Master & Dynamic MW75: The MW75 are Master & Dynamic’s best full-size headphones yet. Needless to say, they’re pricey at $599; most people will be quite satisfied with the $400 Sony WH-1000XM5, which is lighter and more comfortable and delivers best-in-class voice calling and noise canceling. The MW75’s build quality is hard to beat and they offer top-notch sound for a wireless model (I thought they sounded better than Apple’s AirPods Max headphones), plus strong voice-calling and noise-canceling performance. With their support for aptX Adaptive, they have additional appeal for Android users, who can get a touch better sound with the right setup. I was also quite happy streaming music with my iPhone 13 Pro using the AAC codec.

Master & Dynamic MW09: Master & Dynamic headphones and earbuds have always featured unique, eye-catching designs that include premium materials like aluminum, sapphire glass and Kevlar. Its latest MW09 flagship earbuds look pretty similar to its earlier MW08 buds, but have some upgrades on the inside that deliver better performance, particularly when it comes to battery life and noise canceling (it’s now very close to what Bose and Sony offer, although not quite at their level for ANC).

Samsung Galaxy Buds 2 Pro: The Galaxy Buds 2 Pro offers improved noise canceling along with very good sound and voice-calling performance, plus support for high-resolution wireless audio streaming if you’re a Galaxy device owner with the right setup. Their biggest upgrade may be their new design and smaller size, which make them a better fit for more ears. Aside from their somewhat high price tag, their only drawback is that some of their key features only work with Samsung Galaxy devices. To find out their compatibility, check out our Samsung Galaxy Buds 2 Pro review.

Beats Studio Buds Plus: Alas, for those of you who bought the original Beats Studio Buds, which remain on the market for now, I’m sorry to report that these new Plus buds are significantly improved, with better sound, noise canceling and battery life. Additionally, they now deliver top-notch voice-calling performance. Read our full Beats Studio Buds Plus review for more information on the upgrade.

Google Pixel Buds Pro: The Pixel Buds Pro are Google’s first earbuds to feature active noise canceling. While it’s nice that they finally have a feature that most true-wireless earbuds have had for a while, what ultimately sets the Pixel Buds Pro apart and makes them worth considering — particularly for Android users — is their distinct design and winning fit. That helps enhance their performance on both the sound and noise-canceling fronts. While not quite elite for voice-calling, they also performed well as a headset for making calls. Read our Google Pixel Buds Pro review. 

Travel headphones FAQ

Technologies

U.S. diesel price tops $6 per gallon, a record high as Ukraine and Iran wars ripple through economy

U.S. diesel prices hit their highest level ever as fuel supply disruption stemming from the Ukraine and Iran wars lifts transportation costs.

U.S. diesel prices hit $6 per gallon on Friday for the first time ever, as fuel supply disruptions triggered by the Ukraine and Iran wars raises transportation costs across the entire economy.

Truckers and farmers are paying about 63% more to fill up their semis and tractors than they did at this time last year, according to data from AAA. The average price nationwide is now about $6.06 per gallon.

Prices are even higher in California, the biggest agriculture state in the U.S., at $7.98 per gallon.

Fuel costs are rising as crude oil prices have surged in response to a sharp escalation in fighting between the U.S. and Iran this month. U.S. crude oil futures topped $100 per barrel on Thursday for the first time since May. The contract has gained about 20% in September.

Diesel is the real lifeblood of the economy even though consumers tend to pay more attention to retail gasoline prices, said Bob McNally, president of Rapidan Energy, in an interview with CNBC’s “The Exchange” on Tuesday.

Higher diesel prices are passed down to consumers in what they pay for food, consumer goods and energy. Diesel fuels the trucks, trains and ships that bring goods to market. It powers the machinery that farmers use to plant and harvest food. And it heats homes and generates electricity in some cases.

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“It’s the more insidious, more costly, and more impactful fuel,” McNally said. “As we climb higher, it is a real concern.”

Diesel prices at these levels will be a “silent killer” for the economy, said Patrick De Haan, head of petroleum analysis at GasBuddy, in an interview with CNBC’s “Power Lunch” Tuesday.

Gasoline prices, meanwhile, have never been this high this late in the year, De Haan said. Prices at the pump hit a Labor Day record of $4.15 per gallon earlier this week. Americans are spending about $700 million more per day on gas and diesel than they did a year ago, the analyst said.

“There’s sticker shock there for consumers,” De Haan said.

Fuel costs are rising as the Iran and Ukraine wars have disrupted global supplies. Kyiv has pounded Russian refineries, forcing Moscow to ban diesel exports. Iran and its militant Houthi allies in Yemen have also hit the refineries of U.S. Gulf allies. Fuel exports through the Strait of Hormuz are constrained due to the Iranian attacks on tankers.

The wars in Eastern Europe and the Middle East have shut down refineries with about 5 million barrels per day of capacity, said Valero Chief Operating Officer Gary Simmons on the U.S. refiner’s July 30 earnings call.

The world has lost nearly 8% of its diesel supply with little spare refining capacity available to make up the shortfall, said Andy Lipow, president of Lipow Oil Associates, in a Wednesday note.

Rising diesel prices pose an “enormous challenge” for the Trump administration, said Helima Croft, head of global commodity strategy at RBC Capital Markets, in a Sept. 4 interview with CNBC’s “Power Lunch.”

“U.S. refineries are running at 98% utilization rates — there is just no spare capacity,” Croft said.

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Technologies

Buffett’s confidence in troubled decade-old acquisition finally pays off

Warren Buffett has said he paid too much for Precision Castparts in 2016. Now its complex metal castings are in high demand.

(This is the Warren Buffett Watch newsletter, news and analysis on all things Warren Buffett and Berkshire Hathaway. You can sign up here to receive it every Friday evening in your inbox.)

Buffett’s confidence in troubled decade-old acquisition finally pays off

Six years ago, when Berkshire Hathaway took an $11 billion write-down of its $37.2 billion 2016 acquisition of Precision Castparts, Warren Buffett wrote in his annual letter to shareholders he had paid “too much” for the company, which makes “complex metal components and products.”

While it was a “fine company – the best in its business,” he had been “simply too optimistic” about its profit potential, a “miscalculation … laid bare” by the enormous downturn for the aerospace industry, Precision Castparts’ largest customers, amid the Covid pandemic.

In a CNBC interview when the deal was first announced, Buffett admitted it was “a very high multiple for us to pay,” but told shareholders at the 2016 meeting he had great confidence in Mark Donegan, the company’s CEO, both then and now, and the company’s long-term profit outlook.

It’s taken longer than he planned, but Buffett’s purchase is now looking pretty good.

As Reuters puts it, there is currently a shortage of the “complex” products Precision Castparts makes that are essential for engine turbine blades.

They’re also used in natural gas turbines, which are in demand to produce energy for artificial intelligence data centers.

This week, GE Aerospace announced it would pay $11.75 billion to acquire Consolidated Precision Products, one of the few companies that competes against Precision Castparts.

Barron’s calls that “pricey” at 26 times projected 2027 earnings before interest, taxes, depreciation, and amortization.

Using the same multiple, Barron’s estimates Precision Castparts is worth around $100 billion. That’s well above the potential value of $60 billion to $75 billion it cited in an article last month that said the unit “probably has become one of the more valuable divisions” of Berkshire.

It’s also nearly three times the 2016 purchase price.

In the Barron’s piece, Andrew Bary said Berkshire, and its share price, aren’t “getting much credit” for the subsidiary’s rising value, in part because CEO Greg Abel, like Buffett, doesn’t do analyst conference calls or investor events that could draw attention to the unit’s performance.

His recommendation: “Without Warren Buffett at the helm, Berkshire may have to start telling its story if it wants to attract a new generation of investors. This year’s trading action suggests that something may need to change.”

Berkshire bounces a bit as Wall Street sells off

Berkshire Hathaway shares managed a modest gain this week even as Wall Street’s major averages declined, a small departure from the 2026 “trading action” Bary cites.

Both the Class A and Class B shares gained almost 0.9% while the S&P 500 fell by 0.8%.

Until Friday’s bounce, that benchmark index, along with the Dow Industrials and the Nasdaq Composite, had dropped four days in a row as oil and bond yields moved higher.

Even with this week’s outperformance, Berkshire’s B shares still trail the S&P 500 by more than 10 percentage points so far this year.

Nebraska candidate moves to replace ad that included Buffett’s image

The campaign team for the Republican running in Nebraska’s 2nd Congressional District accelerated the deployment of a new campaign ad after Susie Buffett complained about a previous commercial that briefly included an image of her father, Warren Buffett.

In the ad, a picture of Buffett and his name appear on screen for roughly two seconds as candidate Brinker Harding says, “Here in Omaha, we know a thing or two about the stock market, some more than others. But we do it without insider information.”

He then goes on to highlight his call for a ban on Congressional stock trading, saying some lawmakers “trade on secrets you’ll never know,” as they “get rich” while “we barely get by.”

In a report that led its 10 PM CT newscast Wednesday evening, ABC affiliate KETV in Omaha reported Susie Buffett had asked Harding on Sept. 2 to remove the ad.

She told the station, “I think it’s worth it to say that Warren did not give Brinker his permission to use his face or name in his ad.

“It implies that my dad endorses him. He did not have permission to use it.”

The KETV report quoted Harding as saying in a statement, “In Nebraska, we work hard and support each other, and we do it honestly. Warren Buffett exemplifies that, and that was the point of my ad.”

The report said Harding did not comment on whether the ad would be taken down but noted “it does look like new ads from his campaign are beginning to run on some stations.”

A Harding campaign spokesperson told me the campaign did not think its ad implied a Buffett endorsement, but to be respectful to the Buffett family, it responded to her concern by accelerating the rollout of its next planned ad by several days, although its effort was hampered by the Labor Day weekend.

The commercial now running does not show or mention Buffett.

BUFFETT & BERKSHIRE AROUND THE INTERNET

Some links may require a subscription:

– Best’s News and Research Service: 2026 Best’s Rankings: Berkshire Hathaway Takes DPW Top Spot Among Accident & Health Lines

– Financial Times: The day Warren Buffett saved Salomon Brothers

HIGHLIGHTS FROM CNBC’S BUFFETT ARCHIVE

The effects of 9/11 on Berkshire and the insurance industry (2002)

Warren Buffett shares his thoughts on the 9/11 attacks and explains how Berkshire’s insurance companies have started taking terrorism into account when writing policies.

AUDIENCE MEMBER: I know you lost a lot of money as a result of 9/11. But I would like to know how 9/11 changed your life and your investment strategy?

WARREN BUFFETT: It made everybody, I think, in the country aware, I mean, we’ve gone through world wars and all of that, and essentially felt quite protected within these borders.

And I have been quite worried about — Charlie can attest to — you know, the possibility, particularly of some kind of nuclear device in this country, by — probably more likely by terrorists than by some, at least, declared act of war by another state.

And 9/11 made everybody realize that as humans have not progressed, particularly, in terms of how they behave with each other over the years, they have progressed enormously in their ability to inflict damage on those they hate for one reason or another…

In terms of the business aspects of it, in your question, obviously the area at Berkshire that it effects most significantly, by miles, is insurance.

And prior to 9/11, even though we recognized that there could be huge monetary damages that flowed from the activities of what I would call deranged people, we hadn’t really written the contracts in such a way as to either get paid for taking that risk or to exclude the risk. In other words, we were throwing it in for nothing.

We had excluded risk for war. I mean, we knew that we’d seen what had happened in England in the 40s, and so we had taken account of something that some of us had seen with our own eyes, but we didn’t take account of something that we knew was possible, but we just hadn’t seen. And that’s, you know, that’s the human condition, to some degree.

Since September 11th, everybody in the insurance business recognizes that they had exposures that they weren’t charging for, and they either had to exclude those exposures or they had to charge for them.

We have written — first thing we had to do, of course, is we had lots of policies on the books that left us exposed to this, and most of those policies ran for a year, starting at different points. Those have run off to a great degree, but they’re not entirely run off.

The other thing we did was on new policies. We have sold a fair amount, quite a large amount, of terrorism insurance that excludes what we call NCB, nuclear, chemical, and biological, as well as fire following nuclear.

And, we can take a fair amount of exposure to that sort of terrorism, because it doesn’t — it won’t aggregate. It aggregated at the Twin Towers in a way that — World Trade Center — in a way that just about was as extreme as you could get for non-NCB-type activities.

I mean, that was a huge amount of damage done without nuclear, chemical, or biological.

But we can have tens of billions of dollars with NCB excluded throughout a greater New York area, or something, but we can’t have hundreds of billions of exposure that would be exposed, say, to, nuclear activities, because there an act or two, or three, coordinated, could cause damage that would destroy the insurance industry.

And if we had coverage on that, it would destroy us as well.

BERKSHIRE STOCK WATCH

Four weeks

Twelve months

BRK.A stock price: $766,000.00

BRK.B stock price: $510.37

BRK.B P/E (TTM): 12.83

Berkshire Cash as of June 30: $365.5 billion (Down 8.0% from March 31)

Excluding Rail Cash and Subtracting T-Bills Payable: $359.2 billion (Down 3.8% from March 31)

Berkshire repurchased $4.5 billion of its shares in Q2 2026.

BERKSHIRE’S TOP EQUITY HOLDINGS – Sep. 11, 2026

Berkshire’s top holdings of disclosed publicly traded stocks in the U.S. and Japan, by market value, based on the latest closing prices.

Holdings are as of June 30, 2026, as reported in Berkshire Hathaway’s 13F filing on August 14, 2026, except for:

– Mitsubishi, which is as of April 30, 2026

The full list of holdings and current market values is available from CNBC.com’s Berkshire Hathaway Portfolio Tracker.

QUESTIONS OR COMMENTS

Please send any questions or comments about the newsletter to me at alex.crippen@cnbc.com. (Sorry, but we don’t forward questions or comments to Buffett himself.)

If you aren’t already subscribed to this newsletter, you can sign up here.

Also, Buffett’s annual letters to shareholders are highly recommended reading. There are collected here on Berkshire’s website.

— Alex Crippen, Editor, Warren Buffett Watch

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Technologies

Wall Street firm warns AI stock rally may be nearing its end: key reasons

Capital Economics says that while the S&P 500 may keep rising this year, the AI‑driven rally shows multiple bubble indicators and is expected to peak within months, with a projected decline to 6,500 by late 2027.

Various signs of a market bubble indicate that although the S&P 500’s rally can continue this year, its medium‑term outlook appears weak because the market has become overly frothy, according to Capital Economics.

James Reilly, senior market economist at Capital Economics, noted on Thursday that most indicators point to the AI equity rally being close to its end.

Since mid‑2023, Capital has been more optimistic than most about the stock market, viewing AI as a transformative technology.

The firm’s year‑end 2026 S&P 500 forecast has consistently exceeded consensus estimates.

Nevertheless, Capital maintains that the AI‑driven rally is a bubble destined to burst.

To identify a late‑stage bubble, Reilly examines eight metrics: valuations, earnings, index concentration, equity issuance, and foreign interest in U.S. stocks.

Several of these metrics are already at or near levels seen before past market peaks.

While earnings expectations appear aligned with a market top, measures such as volatility and leverage are somewhat less concerning.

Earnings are the most significant warning sign.

S&P 500 earnings growth expectations are hovering at levels only seen at the dot‑com bubble peak, and long‑term EPS forecasts have reached a record high.

Reilly argues that the tech sector’s heavy concentration of this growth means any weakness in tech earnings will heavily drag on the index.

Additional warning signals are also emerging.

Index concentration is approaching dot‑com era extremes, net equity issuance has turned positive, and foreign ownership of U.S. stocks is at a record level.

Reilly warns that another wave of IPOs and share sales could be especially significant, as past issuance booms have historically coincided with market peaks.

He adds that, based on history, the bubble’s end is likely just months away, not years.

Leverage measures are not yet alarming compared with other factors, though the analyst cautions they are moving in a concerning direction.

Volatility indicators resemble those of a mid‑stage bubble, but constituent‑level volatility is not as extreme as at the dot‑com bust’s end.

Reilly expects the S&P 500 to rise from roughly 7,650 now to about 8,250 by the end of 2026, but ultimately projects a decline to 6,500 by the end of 2027.

These projections imply an 8% gain this year and a 21% drop in 2027.

Most signs point to the AI equity rally being close to its conclusion, Capital Economics senior market economist James Reilly stated on Thursday in a note.

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