JP Morgan drawing parallels between today's AI frenzy and the dot-com bubble.
Not the first time we've heard this comparison, but worth remembering: the dot-com crash didn't kill the internet. It killed overvalued companies with no path to profit.
Same logic applies here. AI is real, the technology works, and it's already generating revenue for some companies. But that doesn't mean every stock with "AI" in the pitch deck deserves a 50x multiple.
The question isn't whether AI is transformative—it obviously is. The question is which companies can actually monetize it at scale, and what's a reasonable price to pay today for profits that might arrive in 5-10 years.
History says the winners from these cycles are rarely obvious early on. And the early leaders often aren't the ones still standing when the dust settles.
Not the first time we've heard this comparison, but worth remembering: the dot-com crash didn't kill the internet. It killed overvalued companies with no path to profit.
Same logic applies here. AI is real, the technology works, and it's already generating revenue for some companies. But that doesn't mean every stock with "AI" in the pitch deck deserves a 50x multiple.
The question isn't whether AI is transformative—it obviously is. The question is which companies can actually monetize it at scale, and what's a reasonable price to pay today for profits that might arrive in 5-10 years.
History says the winners from these cycles are rarely obvious early on. And the early leaders often aren't the ones still standing when the dust settles.
