The stock market forms a bubble, but it is not artificial intelligence (Ai). History says this happens next.

  • The S&P 500 is getting more expensive.

  • Some investors believe that AI shares are a bubble.

  • On the other hand, reserves of emerging technologies seem wrong to be expensive.

  • 10 shares we like more than Oklo ›

Almost three years have passed since the Chatgpt has started, and since then the reserves have been under preparation for Breakneck Speed.

From 2023 The beginning of the beginning S&P 500 (Snigex: ^GSPC) is 73 percent. The huge, and even a short rate of tariffs to dive into tariff problems, was unable to slow down. With the help of the so-called wonderful seven, the broad market index has grown as the growth of the AI-promoted has led to stocks such as NvidiaIs it Metaand Microsoft;

There are some evidence that the S&P 500 can form a bubble. After all, the arrow is unusually expensive when the price to force ratio is 28 and the CAPE ratio, which adjusts according to inflation, is even more expensive. The so -called “Buffett” indicator, the S&P 500 top limit ratio to the US common domestic product (GDP) is also the highest of all time.

However, the stock managing this tax is not as expensive as you may think. The diagram below contains five leading stocks.

NVDA PE ratio data according to ycharts

Although none of these supplies are cheap, they usually correspond to the S&P 500, and all grow with double -digit numbers. NVIDIA, which is the most expensive from the group, is also fastest growing, so it is projected that her income will increase by 56%in the next quarter report.

An investor looking at several stock tables.
Image Source: Getty Images.

Instead of high -capital stocks, it seems that bubble formation, emerging technology stocks, and reminiscent of previous stock market bubbles, seem to be formed in the stock market.

For example, at the Dot-Commation, the shavings of small internet companies became public with little or no income at all. This helped to speed up the bust in 2000.

During the pandemic era, we saw a similar phenomenon with special goals acquisition companies (Spac), which almost all crashed or went bankrupt, although they usually debuted successfully.

Other emerging technologies with low revenue, such as electric vehicles, usually went bankrupt or crashed in that era. Even a higher profile newcomers like Rivian and Lucid lost more than 90% of their value.

There are currently several rising sectors that show similar trends. For example, a modular nuclear reactor company Okay, hey (NYSE: Oklo) Has jumped 1200%in recent years, although the company has no revenue and does not expect to earn revenue at least until 2027. Currently, the Oklo market limit is almost $ 17 billion.

Electric vertical carpet and landing vehicles are another sector, which, despite the minimum income, has become sparkling. Archer Aviation (NYSE: ACHR)who also has no income, is currently selling the $ 6 billion market limit.

Finally, this year has increased quantum calculations, although the sector is still earning little or no income. One stock, Quantum calculation (Nasdaq: QUBT)The last year has increased by nearly 3,000%and its market top limit has reached $ 3.7 billion, although this year she expects to earn less than $ 1 million.

Investors’ enthusiasm seems to have moved to unproven technology sectors due to AI shares, as did the Dot-MOM era and pandemic.

Although companies like Oklo and Archar Aviation have potential, their current assessments seem to have no negative risk in promotions. It is likely that it will take a year to get a high income, and even if they get there, it is not a guarantee of success.

In the current stock market, any of these shares could crash if the mood of investors begins to change. Business seems to grow into its ratings without much retreat.

Consider this before buying the shares in Oklo:

Motley Fool Stock Advisor A team of analysts just found what they think is 10 best stocks So that investors can buy now … and oclo was not one of them. 10 stocks that reduced the incision can return the monster in the coming years.

Consider when Netflix This list consisted of 2004. December 17th … If you have invested $ 1,000 during our recommendation, at our recommendation, You would have $ 6507 in USD!* Or when Nvidia Made this list in 2005. April 15 … If you have invested $ 1,000 during our recommendation, at our recommendation, You would have $ 1,114,716!*

Now it is worth mentioning Share advisor The average return is 1 068%-S&P 500, compared to 190 percent. Share advisor;

See. 10 stocks »

*The stock advisor returns from 2025. September 29th

Jeremy Bowman holds positions on platforms and Nvidia. Motley fool is positions and recommend meta platforms, Microsoft and Nvidia. The Motley fool recommends the following options: 2026. January 395 USD calls Microsoft and briefly 2026. January $ 405 Microsoft calls. The Motley fool has a disclosure policy.

The stock market forms a bubble, but it is not artificial intelligence (Ai). History says this happens next. initially released by The Motley Fool

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