dot-com bubble vs. a possible AI bubble.

Rohan Paul Twitter · Rohan Paul (@rohanpaul_ai) · 2026-06-19

NYU Stern valuation professor Aswath Damodaran argues the AI investment boom differs meaningfully from the dot-com era but says whether a bust will follow remains genuinely uncertain.

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AI's Macro Economic Footprint: Fed Chair, Trade Flows, and Market Revaluation

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Topics: ai-investmentmarket-bubblesvaluation

Claims

Damodaran identifies a meaningful structural difference between the dot-com boom and the current AI boom.
Unlike dot-com companies, AI companies have real revenue and business models underlying valuations.
Whether the AI boom will end in a bust comparable to dot-com is still an open question according to Damodaran.

Key quotes

And that's the real big difference between the dot-com boom and bust and the AI boom. We don't know whether there'll be a bust. History...