Don't fear the bubble talk: Data suggests the AI rally is different from the dot-com boom.While some worry about narrow leadership, the current market performance actually aligns with history.Cisco's peak forward P/E ratio soared to 131 in March 2000, while Nvidia's current forward P/E stands at a much lower 45.
The chart below shows the current trend remains above average, but it's important to consider that election years tend to be positive, with the stock market performing well from mid-May to September. Could this be a hint of a summer rally? While this might suggest some expected volatility, it's important to keep things in perspective – the current streak is only a third of the longest ever recorded .
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: