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Why The AI Bubble May Dwarf The Dot-Com Bust
Victor Dergunov · 2026-06-23 · via All Articles on Seeking Alpha

Summary

  • I see the current AI-driven rally as the most significant bubble in market history, with parabolic moves in stocks like Micron, SanDisk, Dell, Marvell, and many others.
  • AI infrastructure spending is unprecedented, but eventual CapEx slowdowns and fierce competition could trigger sharp corrections in memory, hardware, and hyperscaler stocks.
  • Valuations are approaching dot-com era extremes, with the Shiller P/E near 42 and S&P 500 concentration in a handful of AI-linked tech giants.
  • I'm rotating to defensive segments, raising cash, and preparing to capitalize on the downside when the AI bubble bursts, while maintaining a cautious S&P 500 year-end target of 8,000.
  • Looking for a helping hand in the market? Members of The Financial Prophet get exclusive ideas and guidance to navigate any climate. Learn More »
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AI bubble concept. The text "AI" in several colors and fonts embedded in colorful bubbles.

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You know, I've been around markets for a long time. More specifically, I had a profound interest in attempting to read stock quotes in the Wall Street Journal paper when I was about 16. I invested my first $1,000 in 2002 when I was still

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AXON, PLTR, TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am long a diverse portfolio with hedges.

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