Core Viewpoint - The current AI boom is fundamentally different from the dot-com bubble of the late 1990s, as leading companies today possess actual earnings and viable business models, unlike many of the companies during the dot-com era which were primarily based on ideas without substantial business foundations [4][5]. Group 1: Comparison of Dot-Com Bubble and Current AI Boom - The dot-com bubble was characterized by a significant presence of "real" companies with established businesses, sales, and profits, contrary to the common belief that it was dominated by companies like Pets.com and eToys [2][10]. - At the peak of the dot-com bubble, major companies such as Microsoft, Cisco, and Intel had substantial market capitalizations and earnings, with Microsoft valued at $465 billion and generating $22 billion in sales and $8.7 billion in earnings [7]. - The notion that the dot-com bubble was primarily about speculative ventures is misleading; the largest companies had real financial metrics, with 23 out of the top 30 companies on Nasdaq having sales exceeding $1 billion [7][10]. Group 2: Lessons from the Dot-Com Era - Investors during the dot-com bubble were directionally correct in betting on the transformative potential of internet technology, but they erred in timing, valuation, and selecting the right winners [12][13]. - The timing mistake was evident as the internet's true impact was realized only after the rollout of high-speed internet and the introduction of smartphones, which occurred years after the bubble burst [13]. - Valuation errors were significant, with companies like Microsoft trading at 20 times trailing sales and Cisco at 180 times, leading to substantial losses for investors when the bubble burst [14]. Group 3: Current Market Dynamics - The current AI market is experiencing a mania, with high valuations reminiscent of the dot-com era, but the companies involved are reportedly more grounded in earnings and business models [6][17]. - Long-term investors are advised to remain cautious and consider the wisdom of established investors like Warren Buffett, who avoided the dot-com bubble by sticking to known entities [18].