People keep comparing AI to the dot-com bubble. Not the same situation at all.
Dot-com era: massive oversupply, no real demand, companies valued on "eyeballs." Stocks jumped 50-100% just for adding ".com" to their name. Pure speculation.
AI today: strong enterprise demand, supply constraints, and semis trading around 12x forward P/E. That's reasonable valuation for companies with actual revenue and earnings.
The fundamentals are night and day. AI infrastructure is being built on real cash flows and proven use cases. Doesn't mean we won't see corrections or sector rotation, but the "bubble" comparisons miss the mark when you look at valuations and business models.
Dot-com era: massive oversupply, no real demand, companies valued on "eyeballs." Stocks jumped 50-100% just for adding ".com" to their name. Pure speculation.
AI today: strong enterprise demand, supply constraints, and semis trading around 12x forward P/E. That's reasonable valuation for companies with actual revenue and earnings.
The fundamentals are night and day. AI infrastructure is being built on real cash flows and proven use cases. Doesn't mean we won't see corrections or sector rotation, but the "bubble" comparisons miss the mark when you look at valuations and business models.