Tech Stocks Keep Driving the Market Rally. Are We in Dot-Com Bubble 2.0?

US stocks have defied expectations to rally in 2023. It raises concerns about a potential repeat of the dot-com bubble, and this time primarily because of the AI boom.

Analysts at Bank of America categorized the rise in AI stocks as a "baby bubble." Bubbles are "always started by easy money," they wrote, and "ended by rate hikes."

"It's not a bubble," Chris Harvey from Wells Fargo said. He argues valuations and earnings expectations for AI today are more realistic than they were for early internet companies in the late 1990s.