this post was submitted on 20 Jun 2026
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[–] LovableSidekick@lemmy.world 4 points 14 hours ago* (last edited 14 hours ago)

Terrible headline. The AI bubble will definitely burst, but stocks being undervalued is not "exactly" (or even approximately) "how the dot-com bubble burst". The bubble refers to overinvestment by overly optimistic opportunists overestimating the market, and it burst when thousands startups that failed to make a profit ran out of venture capital at about the same time. This is what's going to burst the AI bubble - it's just a question of when. The stock value thing, as the article itself explains (kind of), is just a symptom that investors are starting to sense/fear this getting near.