[{"data":1,"prerenderedAt":133},["ShallowReactive",2],{"insight-ai-boom-vs-internet-bubble":3,"checkin-ai-boom-vs-internet-bubble":132},{"id":4,"title":5,"author":6,"body":7,"category":121,"date":122,"description":17,"extension":123,"featured_image":124,"meta":125,"navigation":126,"path":127,"seo":128,"stem":129,"summary":130,"__hash__":131},"insights/insights/ai-boom-vs-internet-bubble.md","AI Boom vs Internet Bubble","Second 50 Financial",{"type":8,"value":9,"toc":113},"minimark",[10,14,18,23,26,49,53,56,76,80,83,86,100,104,107],[11,12,5],"h1",{"id":13},"ai-boom-vs-internet-bubble",[15,16,17],"p",{},"The comparisons are inevitable. A transformative technology. Soaring stock prices. Massive capital expenditure. Talk of a \"new paradigm.\" If you lived through the late 1990s, the current AI investment cycle feels familiar. But is the comparison fair?",[19,20,22],"h2",{"id":21},"the-parallels","The Parallels",[15,24,25],{},"There are genuine similarities between the AI boom and the internet bubble:",[27,28,29,37,43],"ul",{},[30,31,32,36],"li",{},[33,34,35],"strong",{},"Concentrated gains",": A small number of companies are driving the majority of market returns, just as in 1999.",[30,38,39,42],{},[33,40,41],{},"Massive CapEx",": Companies are spending tens of billions on AI infrastructure, often before the revenue materializes.",[30,44,45,48],{},[33,46,47],{},"Narrative-driven valuations",": Some companies are being valued on what they might become, not what they currently earn.",[19,50,52],{"id":51},"the-differences","The Differences",[15,54,55],{},"But there are important differences that make a direct comparison misleading:",[27,57,58,64,70],{},[30,59,60,63],{},[33,61,62],{},"Real revenue and earnings",": Unlike the dot-com era, the leading AI companies are generating enormous cash flows. These are not speculative startups — they are among the most profitable businesses in history.",[30,65,66,69],{},[33,67,68],{},"Proven technology",": AI is already being deployed at scale across industries, from healthcare to finance to manufacturing. The internet in 1999 was still finding its use cases.",[30,71,72,75],{},[33,73,74],{},"Market structure",": Today's markets are more institutional, more liquid, and better regulated than in the late 1990s.",[19,77,79],{"id":78},"what-it-means-for-your-portfolio","What It Means for Your Portfolio",[15,81,82],{},"We are not dismissing the risks of concentration or stretched valuations. But we also recognize that the AI investment cycle is different in meaningful ways.",[15,84,85],{},"Our approach:",[27,87,88,91,94,97],{},[30,89,90],{},"Maintain diversification across sectors and geographies",[30,92,93],{},"Own the beneficiaries of AI adoption, not just the hype",[30,95,96],{},"Rebalance systematically to manage concentration risk",[30,98,99],{},"Stay focused on your financial plan, not market narratives",[19,101,103],{"id":102},"the-takeaway","The Takeaway",[15,105,106],{},"Every transformative technology creates both opportunity and excess. The key is distinguishing between the two — and having a plan that does not depend on getting the timing right.",[15,108,109],{},[110,111,112],"em",{},"Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.",{"title":114,"searchDepth":115,"depth":115,"links":116},"",2,[117,118,119,120],{"id":21,"depth":115,"text":22},{"id":51,"depth":115,"text":52},{"id":78,"depth":115,"text":79},{"id":102,"depth":115,"text":103},"Investment Strategy","2025-11-15","md","/images/insights/checkincartoonnov2025.jpg",{},true,"/insights/ai-boom-vs-internet-bubble",{"title":5,"description":17},"insights/ai-boom-vs-internet-bubble","Is the AI trade the next dot-com? We look at the parallels, the differences, and what it means for long-term investors.","0DorShZ8-xzQoXbpv7Jgr2K8v4W3ayy7G8uxQeDLbtg",null,1776569583740]