OpenAI

MSFT

<p>UBS warns that the conditions for an AI bubble are maturing, but key peak signals have not yet appeared, and the market is still in the early stages. The peak signals of the tech bubble include: extreme valuations, peak profit momentum, sharp economic slowdown, and frequent large-scale mergers and acquisitions. The top trend is not a one-sided decline, but rather a sharp drop followed by a rebound forming a "double top," ultimately continuing to decline under the pressure of economic recession</p>

- UBS warns that the conditions for an AI bubble are maturing, with six out of seven preconditions met, but key peak signals are still absent.  
- Current valuations of major tech firms are lower than during the 2000 dot-com bubble, indicating that while excitement exists, extreme valuation levels have not yet been reached.  
- The report emphasizes that the current AI-driven market rise is supported by solid fundamentals, contrasting with past bubbles, and suggests that potential risks lie in the high profit margins of the tech sector.

"AI Bubble" is trending! What were the peak signals of the "Dot-com Bubble" in 2000, and what did the "top" trend look like?