Is the AI boom a bubble waiting to pop? Here's what history says.

Is the AI boom a bubble waiting to pop? Here's what history says. Investors are increasingly asking if we're living through another financial bubble that's destined to burst. As the artificial intelligence trade continues to push the stock market to new highs, investors are increasingly asking if we're living through another financial bubble that's destined to burst. The S&P 500 Index jumped 16% in 2025, with AI winners Nvidia, Alphabet, Broadcom and Microsoft contributing the most. But at the same time, concerns are mounting about the hundreds of billions of dollars Big Tech has pledged to spend on AI infrastructure. Capital expenditures from Microsoft, Alphabet, Amazon and Meta Platforms are expected to rise 34% to roughly $440 billion combined over the next year, according to data compiled by Bloomberg.