Lessons from History Regarding Ongoing Talk of an AI Bubble
As enthusiasm around AI continues to propel share prices to record levels, a growing number of investors are asking a familiar question: Is the market heading toward another speculative bubble, or is this simply the early stage of a lasting shift? History suggests the answer is rarely straightforward. U.S. stocks posted another strong year in 2025, with the S&P 500 surging 16%. Much of that advance came from companies most closely tied to AI, including Microsoft, Broadcom, Nvidia, and Alphabet. Their gains have helped push major indexes to record levels, but they have also intensified concerns about how much money is being poured into AI infrastructure. Capital spending…