Apollos Chief Economist Warns the AI Bubble is Worse Than the Dot-Com Bubble
In a striking warning, Torsten Slk, chief economist at Apollo Global Management, has raised alarms about the current state of AI stocks, suggesting they are even more overvalued than the tech stocks during the infamous dot-com bubble of 1999. Slk’s research highlights that the top ten companies in the S&P 500 today, including giants like Nvidia and Microsoft, have inflated valuations that could lead to severe market repercussions when the bubble inevitably bursts.
Slk emphasizes that while the S&P 500 has recently reached new heights, this surge is largely driven by the performance of these top ten stocks, which are trading at prices detached from their actual earnings. The comparison to the dot-com era serves as a cautionary tale, reminding investors that not every bold promise made by tech companies will materialize into reality. As the hype around AI continues to grow, its crucial for investors to remain vigilant and grounded in fundamentals.
As we navigate this rapidly evolving landscape, one must ponder: Are we witnessing the birth of a transformative technology, or are we simply repeating the mistakes of the past? The answer could shape the future of investment in the tech sector.
Original source: https://fortune.com/2025/07/17/ai-bubble-vs-dot-com-stocks-apollo-economist-torsten-slok/