AI-Driven Spending Boom Is No Dot-Com Bust for Investors

Today’s technology boom is being driven by real efficiency gains, which is why we think comparisons with the dot-com bubble are misguided.

Artificial intelligence (AI) is creating lots of buzz, and for good reason. New forms of machine learning have the potential to ramp up productivity, and the many potential applications of AI are just now being discovered. But has market enthusiasm for the technology gone too far?

Massive spending on supercharged computing is raising concerns about a return to the dot-com bubble of the late 1990s and early 2000s, when inflated technology share prices eventually imploded. While we understand the comparisons, we believe they’re largely unfounded.

To understand why, we need to travel back in time and understand what drove the dot-com bubble.