Société Générale’s veteran strategist Albert Edwards warns of striking similarities between current AI-driven market enthusiasm and the 2000 dot-com bubble, predicting a potential market crash by 2025. Edwards highlights concerning parallels, including extreme analyst optimism, soaring tech valuations, and widespread belief in a “new era” of technology. The analysis points to analysts’ increasingly bullish price targets for tech stocks, particularly those related to AI, mirroring the excessive optimism before the 2000 crash. The strategist specifically notes that current analyst behavior shows an “extreme bullish consensus” similar to patterns observed during the dot-com bubble. Edwards emphasizes that while AI technology itself may be revolutionary, market valuations have become disconnected from reality, driven by speculation rather than fundamental value. The report draws attention to the “Magnificent Seven” tech stocks, which have seen extraordinary gains largely due to AI enthusiasm. The strategist warns that when such extreme optimism pervades the market, it often precedes significant corrections. The analysis suggests that investors are potentially overlooking risks while focusing exclusively on AI’s transformative potential, creating conditions ripe for a market correction. Edwards concludes that while AI technology may indeed be transformative, current market valuations and investor behavior indicate an unsustainable bubble that could lead to a significant market downturn by 2025.