TECH - AI Boom Spurs Nvidia-Led US Stock Market Rally Experts Draw Parallels With Dotcom Bubble: 'No One Exactly Knows…' | Benzinga
The U.S. stock market’s recent surge, fueled by the promise of artificial intelligence, is drawing comparisons to the dot-com bubble of the late 1990s. This has raised concerns about another overvaluation scenario.
What Happened: The current stock market rally, largely attributed to the excitement surrounding AI, has sparked memories of the dot-com bubble, reported Reuters. The S&P 500 index has hit new highs, rising over 50% from its October 2022 low, while the Nasdaq Composite index has seen a 70% increase since the end of 2022.
Despite this, stock valuations and investor enthusiasm have not yet reached the levels seen during the dot-com era. However, the market is currently dominated by a small group of tech giants, with AI chipmaker Nvidia Corp. (NASDAQ:NVDA) leading the pack.
The staggering surge in Nvidia shares, which soared nearly 4,300% over the past five years, has drawn comparisons to the meteoric rise of network equipment maker Cisco Systems Inc (NASDAQ:CSCO), which saw its stock climb about 4,500% over five years ...