The AI Hype Is Becoming a Bubble, and It Could Burst Like the Dot-Com Crash, Warns Legendary Investor

The article discusses the growing hype around artificial intelligence (AI) and its potential to create a bubble similar to the dot-com bubble of the late 1990s. According to legendary investor Howard Marks, the current AI frenzy resembles the dot-com craze, with investors pouring money into AI-related companies without fully understanding the technology or its long-term viability. Marks warns that the AI bubble could burst, leading to a market crash akin to the dot-com bust. The article highlights the rapid rise of AI stocks, such as Nvidia, and the influx of venture capital funding into AI startups. However, it also notes concerns about the lack of profitability and the potential for overhyped expectations. The article suggests that investors should exercise caution and avoid getting caught up in the AI frenzy, as the technology may not live up to its current hype, leading to a potential market correction or crash.

Source: https://www.businessinsider.com/ai-internet-dotcom-bubble-tech-stocks-nvidia-market-crash-gordon-2024-5