After a turbulent few weeks in the stock market, there is much speculation that the AI ”bubble” may be about to burst.
Many companies that are involved in AI have seen the value of their stocks skyrocket dramatically over the past year or so. The most celebrated example is Nvidia, whose share price has more than tripled since last summer. Others that have invested heavily in AI, such as Google and Microsoft, have also seen big increases.
Big jumps in share price, especially when they seem hard to link to real value generation, are sometimes seen by analysts as an indicator that prices are due for a correction.
It's hard to shake the feeling that we've seen this all before. The hype and excitement surrounding the new Internet, which peaked in the early 2000s, was quickly followed by the bursting of the “dot com bubble.” Many businesses went out of business, the economy experienced a major downturn, and many jobs were lost.
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