AI Frenzy Propels Tech Valuations Beyond Dot-Com Bubble Highs

Aug 12, 2025
Yahoo Finance
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Summary

In a frenzy reminiscent of the dot-com bubble, AI mania propels tech valuations to dizzying heights, with price-to-earnings ratios of S&P 500's largest companies surpassing 1999 peaks, prompting analysts to caution against 'frothy' market sentiment and potential pullback in AI stocks.

Key Points

  • AI mania leads to sky-high valuations in tech stocks, eclipsing dot-com bubble levels
  • Price-to-earnings ratios of largest S&P 500 companies surpass 1999 peaks
  • Analysts warn of 'frothy' market sentiment, potential pullback in AI stocks

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