Is AI hype a bubble, the next big thing, or both?

AI-related stocks have rallied more than 200% since ChatGPT was released in November 2022, largely driven by Nvidia, $NVIDIA(NVDA.US)$ , gains.

Moreover, FAANG stocks, Meta, $Meta Platforms(META.US)$ , Apple, $Apple(AAPL.US)$ , Amazon, $Amazon(AMZN.US)$ , Netflix, $Netflix(NFLX.US)$ , and Google, $Alphabet-A(GOOGL.US)$ , are up ~300% over the last 5 years.

By comparison, during the 1990s Dot-Com frenzy, Internet-related stocks rallied ~300% in just 2 years before the bubble popped.

On the other hand, the US housing bull market lasted for 4 years and finished after posting 200% gains.

Even if AI is the next big thing, asset prices can't move in a straight line higher forever.