Focus: AI-led US stock prices, similarities to the dot com bubble, be wary of the burst of the bubble
July 2, 2024 6:45 PM GMT+9
Compared to the dot com bubble 20 years ago, the question that prices may be inflated again due to optimism is intensifying.
The AI fever, combined with a solid economy and strong performance, raised the S&P 500 Index (.SPX) by 50% or more from the low in October 2022, and the Nasdaq Composite Index has also risen 70% or more since the end of 2022.
Stock price valuations and investor enthusiasm have yet to reach their peak at the turn of the century, but there are similarities.
Some giant tech stocks, such as AI semiconductor manufacturer NVIDIA, symbolize the current market, and are reminiscent of the “Four Knights” (Cisco, Dell, Microsoft, Intel) in the latter half of the 1990s.
The AI fever, combined with a solid economy and strong performance, raised the S&P 500 Index (.SPX) by 50% or more from the low in October 2022, and the Nasdaq Composite Index has also risen 70% or more since the end of 2022.
Stock price valuations and investor enthusiasm have yet to reach their peak at the turn of the century, but there are similarities.
Some giant tech stocks, such as AI semiconductor manufacturer NVIDIA, symbolize the current market, and are reminiscent of the “Four Knights” (Cisco, Dell, Microsoft, Intel) in the latter half of the 1990s.
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