Wall Street sees warning signs of an AI bubble, but valuations tell different story

[Wall Street sign, New York City, USA] mbbirdy/E+ via Getty Images Wall Street’s growing anxiety about an artificial intelligence stock bubble is colliding with an inconvenient fact: Many of the technology companies driving the rally are considerably cheaper relative to expected earnings than their predecessors were during the dot-com boom. The debate has intensified after the Nasdaq 100 (NDX [https://seekingalpha.com/symbol/NDX]), which reached record highs earlier this month, tumbled 5.5% last week amid renewed concerns about the sustainability of AI investment, Bloomberg News reported Sunday.