Is the stock market in an AI bubble? A recent warning sign suggests yes

Investors are increasingly concerned that the stock market might be experiencing an AI bubble, reminiscent of the dot-com crash of the early 2000s. Despite the S&P 500 reaching a record high, driven largely by semiconductor companies, only a small fraction—around 20 out of 500 firms—have matched these gains, raising alarm about overvaluation. This pattern suggests that while the broader market is soaring, a select few companies are driving the growth, which could signal inflated valuations and potential market correction ahead.