Opinion: This year's Super Bowl ads tell you the AI bubble is about to burst - MarketWatch## Outside the Box# Opinion: This year's Super Bowl ads tell you the AI bubble is about to burst## Why the artificial- intelligence advertising spree could be the last hurrah — like the dot-coms in 2000Published: Feb. 6, 2026 at 6:40 p.m. ETShareResize---Listen(8 min)Photo: MarketWatch photo illustration/iStockphotoDuring Super Bowl XXXIV on Jan. 30, 2000, 14 of the 61 television advertisements were for internet startu ...

Key Points Many artificial intelligence stocks delivered market-beating returns in recent years. According to a Motley Fool survey, less than 10% of AI investors plan to reduce their AI stock exposure over the next year. These 10 stocks could mint the next wave of millionaires › Several artificial intelligence (AI) stocks delivered astonishing returns over the past few years, expanding some valuations to uncomfortable heights and prompting speculation that the sector is approaching bubble territory ...

Economic Differences - The U.S. economy is expected to benefit from fiscal and monetary stimulus in 2026, with the One Big Beautiful Bill (OBBB) projected to contribute approximately 1% to GDP this year [3] - Tax refunds are anticipated to be spent quickly, similar to COVID stimulus payments, with lower-income households spending around 80% of their refunds [4] - Wage growth has moderated, which is typically a sign of a maturing economic expansion, but this moderation is not currently leading to inflationary pressures [9] Market Differences - Current capital expenditures (capex) in the tech sector are primarily financed through corporate free cash flow (FCF), contrasting with the late 1990s when funding was largely through debt and equity issuance [27] - The equity market's rise is driven by improving earnings per share (EPS) expectations rather than price-to-earnings (P/E) expansion, indicating less speculative behavior among investors [29] - Valuations for today's market leaders, such as the Magnificent Seven, are elevated but not at bubble levels compared to historical peaks, with a significant portion of current valuations driven by Tesla [35] AI and Economic Outlook - Rapid AI adoption is expected to enhance productivity and potentially lead to disinflation, which could be bullish for financial markets [21][22] - The anticipated growth in AI capital expenditures is expected to support both the economy and markets, with current spending levels below those seen during previous tech cycles [23] - The labor market may experience weaker job gains due to AI, but the overall economic impact is expected to resemble a jobless recovery rather than a recession [42]

Goldman Sachs' logoMichael M. Santiago/Getty Images AI hype has seized the stock market and been compared with the dot-com bubble of the late 1990s. Investors are acting differently this time, Goldman exec Ben Snider said in a Bloomberg podcast. They are focused on tangible, near-term earnings rather than speculative long-term potential, he said. Twenty-five years after the dot-com bubble saw internet hype grip markets — and then spectacularly unravel — AI is once again fueling market frenzy. Ho ...

Core Insights - The article discusses the potential risks associated with the current AI market, particularly focusing on Nvidia and Palantir as leading companies in this sector [1][3][24] Company Analysis: Nvidia - Nvidia has become a dominant player in the AI space, recently surpassing a market cap of $5 trillion and holding over 90% market share in GPUs deployed in enterprise data centers [2][6] - The company is focused on innovation, with plans to release a new advanced AI chip annually, which may help maintain its competitive edge [7] - Nvidia's CUDA platform enhances customer loyalty by maximizing the potential of its GPUs, particularly in training large language models [9] Company Analysis: Palantir - Palantir's software platforms, Gotham and Foundry, have no direct competitors, providing a unique value proposition that drives sales and profit growth [10][11] - Gotham is utilized by the U.S. government for military planning and data analysis, while Foundry helps businesses streamline operations [10] - Palantir's strong operating cash flow and double-digit sales growth are supported by its competitive advantages in the market [11] Market Trends and Historical Context - The article draws parallels between the current AI boom and past technology bubbles, suggesting that overestimation of technology adoption rates could lead to a bubble-bursting event [13][14] - Historical data indicates that leading companies often experience unsustainable price-to-sales (P/S) ratios, with Nvidia and Palantir currently at P/S ratios of 23 and 120, respectively [19][21] - The article warns that while Nvidia's P/S ratio is below the unsustainable threshold of 30, Palantir's high ratio cannot be justified, indicating potential risks for both companies in the future [21][22]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Bitcoin’s valuation is “ridiculous,” according to “The Big Short” investor Michael Burry, who predicted the 2008 housing market crash years in advance. “I think that Bitcoin at $100,000 is the most ridiculous thing,” Burry told author Michael Lewis in an episode of the podcast “Against The Rules: The Big Short Companion” last week, adding that “it’s not worth anything.” Don't Miss: Missed Nvidia and Tesla ...

Bloomberg Cisco Systems Inc., a bellwether stock of the dot-com technological revolution, has returned to a record after a quarter century, thanks in part to the artificial intelligence spending boom. Shares rose 0.9% to $80.25 on Wednesday, taking out a peak that stood for more than 25 years. The stock’s March 27, 2000 high is viewed by many as the height of the dot-com bubble and marked the high-water mark for the tech-heavy Nasdaq 100 Index until late 2015. Most Read from Bloomberg “It’s a quaint r ...

Historical headwinds may prove insurmountable for Wall Street's hottest artificial intelligence (AI) stock in the new year.Roughly 30 years ago, the advent and mainstream proliferation of the internet began charting a new course for corporate America. It opened new doors for businesses to sell and market their products and services, while also breaking down information barriers that had previously existed on Wall Street between professional and retail investors.For decades, investors have been waiting (some ...

Unfortunately, investors have a terrible habit of focusing on the first common trait and overlook the fact that innovations require ample time to develop. For 30 years, investors have persistently overestimated the adoption, utility, and/or optimization of new technologies, resulting in lofty expectations not being met.The need for the underlying technology to mature and evolve.Over the last three decades, investors have been privy to a number of hyped technology trends, including the internet, genome decod ...

Group 1 - The ongoing AI boom is drawing parallels to the dot-com bubble, particularly with Nvidia being compared to Cisco during that era [1][2][6] - Cisco's stock took a significant hit when the dot-com bubble burst, and it took 25 years for the stock to recover to its 2000 peak, raising concerns about a potential AI bubble [2] - The emergence of numerous AI startups is generating excitement but also concern among investors, reminiscent of the startup surge during the dot-com bubble [3][4] Group 2 - High-profile tech visionaries are leaving established companies to start their own AI ventures, indicating a strong belief in the potential of AI [5][6] - The rapid growth of AI startups may lead to challenges in talent retention for larger tech firms [6]