---
title: "During the dot-com bubble, companies with high capital expenditures had high valuations. In the AI e"
description: "During the dot-com bubble, companies with high capital expenditures had high valuations. In the AI era, companies with high capital expenditures see their market caps get hammered. The contrast betwee"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/38799365.md"
published_at: "2026-02-20T08:43:48.000Z"
author: "[zhangch](https://longbridge.com/en/profiles/16508584)"
---

# During the dot-com bubble, companies with high capital expenditures had high valuations. In the AI e

During the dot-com bubble, companies with high capital expenditures had high valuations. In the AI era, companies with high capital expenditures see their market caps get hammered. The contrast between the two is stark.

At most, valuations are on the high side, but they are far from a bubble. Moreover, all of the "Magnificent 7" except Tesla have solid earnings to back them up.

### Related Stocks

- [TSLA.US - Tesla](https://longbridge.com/en/quote/TSLA.US.md)

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.