Comparing the AI Boom (2024–2025) to the Dot-Com Bubble (1999–2000)
The surge in artificial intelligence (AI) investments between 2024 and 2025 bears striking resemblance to the dot-com bubble of the late 1990s. During the dot-com era, investors rushed to pour capital into internet-related companies, many of which had no viable business models, revenue, or customers. Today, a similar phenomenon appears to be unfolding in the AI sector.
Companies developing AI tools—especially chatbots like ChatGPT and its competitors—have attracted billions in investment. However, the earnings generated by these tools remain modest relative to their massive valuations. This mismatch between investment and revenue is reminiscent of the dot-com years, where capital inflows far exceeded the commercial output of internet companies at the time.
One red flag is the re-emergence of speculative IPOs. In 1999–2000, many companies with no profits, and sometimes no products, went public and saw their stock prices soar 300–500% within days. Today, we’re beginning to see a similar pattern. If AI startups with no revenue, no user base, and no employees begin listing publicly at sky-high valuations, that’s a clear sign of bubble-like behavior.
Another critical signal would be if the return on investment (ROI) in AI begins to mirror that of the internet in the late 1990s—meaning heavy spending with little immediate financial return. When the tech bubble burst, it took over 2.5 years for markets to bottom out, and the NASDAQ only returned to its previous highs 18 years later. The S\&P 500 took six years to recover. This historical pattern suggests that a sharp correction in AI stocks, followed by a long recovery, is plausible.
However, it’s also important to remember that while the dot-com crash was painful, it didn’t invalidate the internet. In fact, the digital economy exploded afterward. Similarly, a potential "AI crash" may be a healthy cleansing phase before the strongest, most innovative AI companies rise from the rubble and dominate the next era of technological growth.
-AI stocks that I looked at:
BFLY; 
INOD; 
JTAI; 
AI (C3.ai); 
TEM; 
AISP; 
PLTR; 
CRWV; 
MRVL
*Disclaimer: This is just my personal opinion and not financial advice. I am not a professional financial advisor. Please do your own research before making any investment decisions. Any losses incurred are solely at your own risk.*
The surge in artificial intelligence (AI) investments between 2024 and 2025 bears striking resemblance to the dot-com bubble of the late 1990s. During the dot-com era, investors rushed to pour capital into internet-related companies, many of which had no viable business models, revenue, or customers. Today, a similar phenomenon appears to be unfolding in the AI sector.
Companies developing AI tools—especially chatbots like ChatGPT and its competitors—have attracted billions in investment. However, the earnings generated by these tools remain modest relative to their massive valuations. This mismatch between investment and revenue is reminiscent of the dot-com years, where capital inflows far exceeded the commercial output of internet companies at the time.
One red flag is the re-emergence of speculative IPOs. In 1999–2000, many companies with no profits, and sometimes no products, went public and saw their stock prices soar 300–500% within days. Today, we’re beginning to see a similar pattern. If AI startups with no revenue, no user base, and no employees begin listing publicly at sky-high valuations, that’s a clear sign of bubble-like behavior.
Another critical signal would be if the return on investment (ROI) in AI begins to mirror that of the internet in the late 1990s—meaning heavy spending with little immediate financial return. When the tech bubble burst, it took over 2.5 years for markets to bottom out, and the NASDAQ only returned to its previous highs 18 years later. The S\&P 500 took six years to recover. This historical pattern suggests that a sharp correction in AI stocks, followed by a long recovery, is plausible.
However, it’s also important to remember that while the dot-com crash was painful, it didn’t invalidate the internet. In fact, the digital economy exploded afterward. Similarly, a potential "AI crash" may be a healthy cleansing phase before the strongest, most innovative AI companies rise from the rubble and dominate the next era of technological growth.
-AI stocks that I looked at:
BFLY; INOD; JTAI; AI (C3.ai); TEM; AISP; PLTR; CRWV; MRVL*Disclaimer: This is just my personal opinion and not financial advice. I am not a professional financial advisor. Please do your own research before making any investment decisions. Any losses incurred are solely at your own risk.*
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.