Will AI Become the Next Dot-Com Bubble?

With the multiple billions constantly pouring into every and any Artificial Intelligence stock out there, one must wonder if we are looking at the next Dot-Com Bubble.

 

Cue Up: Intel’s (INTC) 54% run up in stock price in the last few weeks followed by AMD’s (AMD) 28% jump in the last few days.

 

And the surge in price is mostly related to what they are doing to capitalize on in the AI frenzy.

Ironically (or NOT) if you compare many of the charts on current AI companies with the charts of the tech/internet stocks in the late 90s you’ll see some remarkable resemblance.

And like the internet bubble from 1999, the story was how the internet was a transformational technology that would reshape commerce, communications, and culture.

Not surprisingly today, artificial intelligence (AI) carries the same irresistible promise of reshaping industries, creating productivity booms, and unlocking new frontiers.

The parallels are hard to miss, along with the current price action.

Question:  Does anyone out there remember how, within the last decade:

 

• It was going to be 3D printers in every house
• Stores were going to be obsolete
• The market was going to grow to the trillions
• We were going to have Star Trek replicators
• Hundreds of billions were plowed into the sector
• And thousands of different machines were available

 

 

After reality set in it turned out the machines are incredibly useful for a handful of industries.

 

And speaking of reality checks, the AI generation is a great tool for those who know how to use it.

But most participants use it to put Pikachu into 15 second movie clips.

And what if…?

 

 

 

Next Dot-Com Bubble?

 

 

Question:  Who is doing the lion’s share of promoting AI?

 

If you can’t guess who then simply notice how government and the wealthy are laser focused on keeping the money spinning.

Meanwhile the common people are ONLY (or should be) interested in stability and safe communities to raise their children (away from freaks).

But I digress.

 

Keep in mind that the Boyz in the “Club” are openly cheering the run up in AI companies referencing one of their favorite barometers…the charts.

However, looking at the S&P graph (while listening to the Wall Street Gurus “Talking Their Book”) you would be forgiven for concluding that the AI bubble has at least one more year until it pops.

At FinancialsMatter we don’t believe that for a second.

 

Why?

 

READ:  Another Sadie Berger Moment in 2025 (HERE) August 26, 2025

 

 

 

And for more in-depth coverage about the AI Bubble vs Dot-Com Bubble, be sure to read our upcoming October edition of “Simplifying Wall Street…In Plain English” (HERE).

Share this with a friend…especially if they are having a “Sadie Berger” moment.  They’ll thank YOU later.

 

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

“And you shall know the truth, and the truth shall make you free.”

~John 8:32~