The case
Between 1995 and March 2000, internet companies were valued as if their future profits were already in the bank. Then the bubble burst on the Nasdaq, and by April 2000 it was clear worldwide that the dream had ended. Today, a similar pattern may be emerging in the valuation of artificial intelligence (AI) companies. Is history repeating itself?
Source: Anton Ladner, “Sonntag” & “Doppelpunkt” (German)
The commentary
Over the past twelve months, AI stocks have delivered “super” results. After surging by an average of around 60 % from May 2025, enthusiasm has cooled markedly. Since the start of 2026, the market mood has shifted from “anything with AI” to “anything but AI” a sign that expectations may have run ahead of reality.
The promises remain ambitious. Anthropic, for instance, claims its language model Claude, paired with the Cowork application, could automate large parts of legal work. At the same time, the company’s share price has soared from about USD 60 to over USD 800 within a year, which marks an increase of more than 1,300 %. Yet it has yet to turn a profit.
A recent job posting in Switzerland, offering an annual salary of CHF 680,000 Swiss for an AI developer, added to the hype and also the unease.
The parallels with the dotcom era are hard to ignore: Soaring valuations, bold promises and thin earnings. Whether this amounts to a full-blown bubble remains to be seen.
