US chief market strategist warns of 90s-style AI bubble

InvestorDaily

Morningstar’s chief US market strategist says he is beginning to see signs of the 1990s tech bubble appearing as established companies pivot to AI brands. “There’s the old saying that history may not necessarily repeat itself, but it sure does rhyme – and I’m starting to see some echoes of the 1990s tech bubble,” Dave Sekera said in a note to investors. Sekera’s concerns stem from non-AI companies re-inventing themselves, such as the New Zealand-founded footwear company ‘Allbirds’ (NASDAQ:BIRD) that recently “sold its sole” to artificial intelligence.

“A company called Allbirds that used to make shoes sold their shoe business and announced last week that they’re going to use those proceeds to go buy AI GPUs and turn themselves into a data centre. What does a shoe company know about being a data centre?,” Sekera questioned. “I don’t know, but the stock skyrocketed. It went from about US$2.50 a share to over US$20 a share before starting to retreat.”

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