Important points
- The Nasdaq 100 has soared 130% since January 2023, largely as advances in artificial intelligence boosted valuations of technology companies.
- Market analysts are increasingly pointing to parallels with the dot-com era of the late 1990s, when a wave of internet enthusiasm led to overvaluations and a subsequent crash.
The Nasdaq 100 has soared 130% since January 2023, drawing comparisons to the dot-com era as advances in AI rapidly increase valuations across major technology companies.
Recent analysis highlights similarities between the current AI-driven market frenzy and the focus of internet adoption during the dot-com bubble of the late 1990s. In historical times, the valuations of Internet startups were overinflated, ultimately leading to a long-term market downturn.
Investor sentiment on social platforms reflects concerns about the possibility of a correction similar to the dot-com crash, with observers noting a pattern of regular market declines before major peaks.
But the discussion emphasizes that today’s tech leaders exhibit stronger fundamentals than the speculative startups of the dot-com era, which could lessen the severity of the economic downturn.
