The AI valuation bubble is now getting silly
11 hours ago
- #AI bubble
- #market speculation
- #dotcom bubble
- The late-1990s dotcom bubble was marked by irrational exuberance, with the Nasdaq rising 86% in 1999.
- Alan Greenspan warned of 'irrational exuberance' in 1996, yet the bubble persisted until 2000.
- Current AI bubble comparisons to the 1990s highlight similarities in transformative potential but uncertainty in adoption speed and returns.
- Four signs suggest the AI bubble may be nearing its end: stretched valuations, high market concentration, risky correlations, and a less favorable economic backdrop.
- Nvidia's revenues show stronger foundations than the dotcom era, but reliance on a single stock for AI sentiment is concerning.