Are we in an AI bubble?

Investor enthusiasm for AI remains powerful, but Chris Buchbinder argues the market still looks more like 1998 than 2000. He sees real support from large, cash-rich hyperscalers and ongoing capital spending that could keep the cycle going, even as valuations stay elevated.

At the same time, he warns that a true bubble could still form later, especially once private leaders like OpenAI and other startups come public and investors get a fuller look at their economics. A softer rate backdrop may also extend risk appetite and keep money flowing into AI names.

For investors, the opportunity is to participate in a major long-term technology shift without ignoring valuation risk. Buchbinder is pairing AI exposure with defensive holdings in beaten-down sectors such as energy and cable, where low prices could offer balance if sentiment turns.