Economists Warn: AI Bubble May Be Worse Than the Internet Bubble
Economists warn that the current AI bubble risk exceeds the internet bubble of the 1990s. The price-to-earnings ratios of the top ten companies in the S&P 500 have reached record highs, but earnings have not kept pace, indicating a disconnect between valuations and fundamentals. Tech giants like NVIDIA are investing heavily in AI, but their returns have not matched their expenditures. Experts compare the current AI hype to the subprime crisis, highlighting the risk of overheating in the market. Although it is forecasted that the generative AI market will grow rapidly, the current revenue scale remains negligible compared to the massive investments, and investors should be cautious of potential market adjustment risks.
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