Tech Frenzy Mirrors Dot-Com Mania—Will This Bubble Pop Harder?
Silicon Valley’s champagne corks are popping again as valuations defy gravity—just like 1999. But this time, the algorithms are drunker than the investors.
Signs everyone’s ignoring (again):
- Profitless unicorns trading at 50x revenue
- SPACs repackaging the same vaporware
- ’Web3’ startups solving problems that don’t exist
The Fed’s punchbowl got spiked with AI hype this cycle. When the music stops, the bagholders will be retail traders—not the VCs who already cashed out.
Unlike simple price charts, this ratio accounts for how much liquidity has entered the system. And once again, valuations appear to be stretching far beyond those monetary boundaries.
Behind much of the current momentum is the artificial intelligence boom, which has propelled companies like Palantir into the spotlight with sharp revenue jumps and soaring stock prices. But this rapid ascent has prompted renewed debate over whether excitement is outpacing reality.
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The surge in AI and chipmaker stocks has created a wave of Optimism reminiscent of the early internet days — when investors were more focused on vision than viability.
Compounding the pressure are political tremors. President TRUMP has hinted at sweeping tariffs targeting European goods, along with a threat to slap a 25% tax on iPhones bought in the U.S. These comments rattled markets, dragging down Apple shares and injecting fresh uncertainty into an already fragile climate.
Throughout 2025, the tech sector has shown signs of instability, swinging between sharp rallies and sudden selloffs. And with valuations now revisiting historic danger zones, some fear that the next leg down may be more than just a correction — it could be a reckoning.
