AI bubble bigger than dot-com? Apollo economist sounds the alarm

[Artificial Intelligence digital concept - AI. innovations and technology, digital world]
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Apollo Global Management's chief economist, Torsten Sløk, has raised fresh concerns over the surging artificial intelligence (AI) rally, suggesting that today’s AI-driven market froth could surpass the dot-com bubble of the late 1990s.

According to Sløk, valuations among the top 10 companies in the S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500])—many of which are at the heart of the AI revolution—are now more stretched than during the height of the tech mania over two decades ago.

Although Sløk didn’t single out specific firms, the so-called "Magnificent Seven"—Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]), Alphabet (GOOG [https://seekingalpha.com/symbol/GOOG])(GOOGL [https://seekingalpha.com/symbol/GOOGL]), Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]), Meta Platforms (META [https://seekingalpha.com/symbol/META]), Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]), Apple (AAPL [https://seekingalpha.com/symbol/AAPL]), and Tesla (TSLA [https://seekingalpha.com/symbol/TSLA])—make up a significant portion of the index's top tier and have been primary engines behind both the AI narrative and market gains over the past handful of years.

See the below chart provided by Apollo:
[Apollo Asset Management]
AI Bubble (Apollo Asset Management)

Quantitative metrics from Seeking Alpha reflects mixed signals across this elite group. See how they matchup against each other below:

* Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]), quant grade of 4.84.
* Alphabet (GOOG [https://seekingalpha.com/symbol/GOOG])(GOOGL [https://seekingalpha.com/symbol/GOOGL]), quant grade of 3.49.
* Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]), quant grade of 3.49.
* Meta Platforms (META [https://seekingalpha.com/symbol/META]), quant grade of 3.48.
* Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]), quant grade of 3.43.
* Apple (AAPL [https://seekingalpha.com/symbol/AAPL]), quant grade of 3.32.
* Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]), quant grade of 3.23.

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