Is the stock market in an AI bubble?
Stock markets surged again this week, reaching new all-time highs. Yet again, gains in financial markets were driven by a handful of companies focused on artificial intelligence.
Tech giants like Meta and Nvidia have seen their values soar while investors wait breathlessly for OpenAI, Anthropic and Perplexity to go public.
But for all the enthusiasm, some investors are worried. They say we’ve been down this road before. And they’re pointing to the dot-com bubble in the 1990s when tech companies skyrocketed in value only to see the bubble burst in early 2000.
“The difference between the IT bubble in the 1990s and the AI bubble today is that the Top 10 companies in the S&P 500 today are more overvalued than they were in the 1990s,” wrote…
