Retail investors’ fears about “AI Bubble” appear to have fallen after a surge this summer. That could mean that the stock will swell even further before it finally tops out. According to Google Trends data over the past three years, the number of the term “AI Bubble” peaked on August 20th and August 21st, respectively. At the time, searching for the terms search dramatically exceeded the “stock market bubble,” “AI boom,” and “crypto bubble.” Peak interest in AI bubble search came shortly after the Massachusetts Institute of Technology Report found that 95% of organizations have earned zero returns despite attracting attention between $30 billion and $40 billion in enterprise investments in generated AI. Around the same time, Meta confirmed that after making employment in the new AI sector, Openai CEO Sam Altman also said that investors seemed “overly excited” about AI and that Openai’s much-anticipated release of the ChatGPT-5 model could not impress consumers. The real bubble risks in artificial intelligence inventory remain, but history shows that it is likely that it should go further. “The bubble is not (a) a neat linear process,” Deutsche Bank strategist Adrian Cox wrote in a memo that first points out a decline in Google searches. What happened before Cox peaked in March 1999 and explosively grown in 1999, the top of the “dot-com bubble,” and found that Nasdaq composites roamed profits and declines, but then saw explosive growth in 1999 after filming Truefemure “heavem hasever,” Truevell, Truevell, and after filming Truefeimooch in 2000, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, Truevell, He added that other enthusiasts have followed similar trends, including the British railway boom and bust of the 1840s. In the peak year of spending in 1847, investors built more than $1 trillion of public infrastructure, a modern day equivalent of more than $1 trillion, according to a paper written by Andrew Odilizco, professor emeritus at the University of Minnesota, before 1849 railroad stock reached its decades lowest level. “The previous boom and bust followed a similar pattern… The bubbles have a variety of lifespans. The South Sea bubbles were blown away in seven months, and the Dot-com bubbles took five years,” Cox wrote, referring to the speculative financial crisis caused by the massive losses of the British total storage company Nankai Company. What this means for stocks given the previous bubble pattern, Wall Street strategists believe AI stocks could continue to swell higher before they burst. “We continue to think that a bigger bubble will come out of AI before AI ends, and those who believe that valuation-sensitive investors and those who thought our exceptionalism had peaked as “stops over time.” GQG partners also pointed out that AI stocks could go even higher as investors fall into “Tina” – there is no alternative. “For the first time in our company’s history, many large technology companies today, especially those with meaningful roles in building AI infrastructure, represent a backward quality. For the majority of the past 15 years, investors who compared the technology sector and the vibrant era of the dotcom era have repeatedly proven that investors who compared the Dotcom era are repeatedly wrong. A website post on September 11th. “In our view, the outcome of the current AI boom could be worse than the outcome of the dotcom era, as they are much larger in size compared to the economy and market,” the company said. Going forward, MRB partner strategist Salvatore Ruscitti believes investors should have higher portfolio diversification than usual, with names that are internationally in other regions of the US stock market. In a memo on Tuesday, Ruscitti pointed out that investors continue to face the risk of ongoing AI activation twins, with the top 10 S&P 500 stocks accounting for more than 40% of the index’s market capitalization. Investors need to increase their exposure to other regions of the US stock market. He also said internationally that risk compensation trade-offs are more advantageous. Certainly, revenue expectations and bets on future interest rate cuts have continued to support market rallies in recent weeks. This week, major US stock indexes jumped to the highest ever high this week as they continued to build up on mega-cap technology and high-flying AI play that has led the S&P 500 revival since their April lows. – CNBC’s Ryan Sammy contributed the report. (Learn the best 2026 strategies from within NYSE with Josh Brown and others on CNBC Pro Live. Tickets and info here.)
