AI-fueled stock surge sparks dotcom bubble fears

A U.S. stock rally fueled by artificial intelligence enthusiasm evokes memories of the dotcom bubble, raising concerns about potential overvaluation. The S&P 500 and Nasdaq Composite have surged impressively, driven by major tech players like Nvidia. Despite valuations being lower than during the dotcom peak, the market's exuberance is reminiscent of the late 1990s. Analysts suggest that robust earnings are currently supporting the rally, but caution remains about a possible AI-driven crash.

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By Lewis Krauskopf

A U.S. stock rally supercharged by excitement over artificial intelligence is drawing comparisons with the dotcom bubble two decades ago, raising the question of whether prices have again been inflated by optimism over a revolutionary technology.

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