Stock market highs in today's AI boom mirror the dot-com bubble

Today’s AI boom and its stock market highs are drawing comparisons with the 1990s dot-com bubble — and fears for the crash that ended it.

It seems nothing can hold back the bulls on Wall Street — not trade wars or interest rates or nagging concerns over the cost of living.

Fueled by trillions in spending on artificial intelligence, U.S. stock markets are setting record highs. In the past three years, the tech-heavy Nasdaq Composite Index has doubled.

Federal Reserve Chairman Jerome Powell recently called stocks “fairly highly valued.”

If all this frothy optimism has you humming Prince and partying like it’s 1999, you’re not alone.

Twenty-five years after the first internet bubble burst in March 2000, investors and analysts are starting to draw comparisons between today’s AI boom and the dot-com bubble of the late 1990s, which ended with a crash.