Marketplace Morning Report Will AI bubble fears persist?
Nov 20, 2025
Wall Street celebrates Nvidia's earnings, but fears persist over a potential AI market bubble. Financial leaders warn that AI stocks may be overvalued, drawing parallels to the dot-com crash. Critics discuss how transformative tech often attracts speculative investments. Despite arguments that current spending signifies a fourth industrial revolution, concerns about profitability linger. Meanwhile, Meta begins enforcing age restrictions on social media accounts for teens in Australia, amid broader discussions on youth online safety.
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Episode notes
New Tech Draws Bubble Dynamics
- New technologies often attract excessive hype and investment that can form bubbles.
- John Danielson warns some current AI leaders may not dominate the space long-term.
Dot‑Com Collapse Recalled
- The dot-com crash wiped about $5 trillion off US tech indexes over two years in 2000.
- The episode recalls rapid investor flight when confidence evaporated during that era.
Big Spend, Small Returns So Far
- Massive AI investment is flowing, including hundreds of billions into data centers and projects.
- Yet estimates say 95% of firms deploying AI currently see no profit from it.