The article discusses potential parallels between the current AI stock market boom and the dot-com bubble of the late 1990s, with Bernstein analysts warning of a possible market crash in 2025. The analysis suggests that the AI-driven market enthusiasm could lead to a significant correction, similar to the tech crash of 2000-2002. The report highlights how AI stocks have driven market gains, with the “Magnificent Seven” tech companies contributing significantly to market performance. Bernstein’s analysts recommend investors consider shifting towards dividend-paying stocks as a defensive strategy, noting that such stocks historically performed well during the dot-com crash. They emphasize that dividend strategies typically outperform during market corrections and could provide stability in a potential AI bubble burst. The analysis points out that while AI technology has genuine transformative potential, current market valuations may be overextended, similar to how internet companies were overvalued during the dot-com era despite the internet’s eventual revolutionary impact. The report suggests that investors should maintain exposure to AI while also diversifying into more stable, dividend-paying sectors. Key takeaways include the importance of balanced portfolio management, the risks of concentrated tech exposure, and the potential value of dividend-focused investing as a hedge against market volatility.