AI Stocks May Be in a Bubble, and Car Prices Could Rise Soon — Here’s What to Know

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Sep 11, 2025

Joining the discussion are Sam Taube, an investing writer at NerdWallet, and Shannon Bradley, a car-buying expert. They delve into the intriguing possibility of AI stocks being in a bubble, drawing parallels to the late-'90s dot-com boom. Taube shares tips on diversifying investments and the importance of understanding market signals. Meanwhile, Bradley discusses the current car market, advising on pricing trends, negotiation tactics, and essential financing tips, including the pros and cons of various loan terms.

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INSIGHT

AI Euphoria Mirrors Dot‑Com Fears

AI excitement has driven huge gains for companies like NVIDIA, raising bubble concerns.
Experts including Sam Altman warn valuations may resemble the late-1990s dot-com excess.

INSIGHT

AI Investment Returns Lag Hype

Wall Street analysts and researchers express concern about AI-driven market euphoria.
MIT found 95% of companies experimenting with generative AI see no current return on investment.

INSIGHT

Valuations Could Reflect Real Structural Change

Some analysts argue AI valuations may be justified by structural economic shifts.
It's too early to dismiss AI gains as purely speculative according to dissenting Wall Street views.

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Learn how to think about AI stocks and decide if now’s the time to buy a car, including how to choose between 48- and 60-month loans.

Are AI stocks in a bubble? Should you buy a car now or wait? Hosts Sean Pyles and Elizabeth Ayoola discuss AI-driven market euphoria and today’s car-buying math to help you understand how to balance risk in your investments and make a cost-smart auto purchase. Joined by NerdWallet senior news writer Anna Helhoski and investing writer Sam Taube, they begin with a discussion of whether AI stock valuations resemble the late-’90s dot-com era, with tips and tricks on reading signals like index P/E ratios, building diversification beyond a single index fund, and using “lazy portfolios” or robo-advisors to stay balanced.

Then, auto Nerd Shannon Bradley joins Sean and Elizabeth to discuss the 2025 car market and financing choices. They discuss what stable-but-high prices mean for timing a purchase (and how tariffs could push prices higher), how much to put down and when negotiation is realistic, and choosing between 48- vs 60-month terms if you expect to pay a loan off early. You’ll also hear practical pointers on pre-qualification vs. pre-approval, checking Kelley Blue Book and Edmunds pricing, avoiding prepayment penalty surprises, and a reminder to consider tax implications if you plan to clear an auto loan with pension income.

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Estimate your monthly car loan payment and total cost with NerdWallet’s auto loan calculator. Adjust car price, term, rate and down payment to find the best fit for your budget. https://www.nerdwallet.com/calculator/auto-loan-calculator

Want us to review your budget? Fill out this form — completely anonymously if you want — and we might feature your budget in a future segment! https://docs.google.com/forms/d/e/1FAIpQLScK53yAufsc4v5UpghhVfxtk2MoyooHzlSIRBnRxUPl3hKBig/viewform?usp=header

In their conversation, the Nerds discuss: AI bubble, Nvidia market cap, are AI stocks overvalued, Nasdaq 100 PE ratio, S&P 500 concentration, diversification strategy, lazy portfolio, robo-advisor comparison, bond allocation, international index fund, how to invest during AI boom, dot-com bubble vs AI, used car prices 2025, average new car price KBB, car tariffs impact on prices, is now a good time to buy a car, negotiating car price, Kelley Blue Book vs Edmunds, 48 vs 60 month auto loan, auto loan interest cost, prequalification vs preapproval, hard credit inquiry car loan, prepayment penalty auto loan, auto loan calculator, refinance auto loan rules, when to buy previous model year car, dealer incentives low APR, end of month car deals, pension to pay off car, car loan term strategy, tariffs and carmakers losses, Edmunds used car average price, S&P 500 exposure to AI, best Robo advisors list, and lazy portfolio examples.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.

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