Ai Stock Frenzy Resembles Dot-com Bubble And May Explode Disastrously, Experts Warn

coffeekai/Getty ImagesExperts say the AI mania has shades of the dot-com and housing bubbles and could end painfully.Cheap money and hefty government spending have driven asset prices to dangerous highs, they told BI."The proverbial powder keg is full but won't blow until something ignites the fuse," they warned.Experts say the frenzy around AI stocks resembles the last two major market bubbles — and could end in disaster if investors get spooked.Every financial mania is different, but the current tech boom shows "some similarities with the run-up to both the dot-com and 2008 housing bubbles," Nathan Burks, Adetokunbo Fadahunsi, and Ann Marie Hibbert told Business Insider in an email.The trio co-authored a paper titled "Financial Contagion: A Tale of Three Bubbles" in 2021.

 

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