Analysis of Reddit Post: AI Market vs. Dot-Com Era Parallels

The Reddit post draws parallels between the current AI market and the dot-com era, but critical differences emerge: AI companies have real earnings (e.g., Microsoft’s P/E ratio of 33.5 [0]) unlike dot-com firms (many unprofitable [2]). Alphabet’s Gemini3 Pro, released in November 2025 and trained entirely on Google’s TPUs [1,5], highlights ongoing AI innovation. The S&P500 Shiller P/E ratio is near 40.4 [2], approaching dot-com peaks, but profitability mitigates bubble risks [0]. The Technology sector was up 2.08593% as of Nov 25, 2025 [7], supporting bull market continuation claims.

1. Earnings Distinction
   : The core difference between AI and dot-com eras is real, consistent earnings from AI leaders like Google and Microsoft [0,2].
2. AI Innovation Moat
   : Gemini3 Pro’s TPU training reduces Alphabet’s reliance on third-party chips (e.g., Nvidia), strengthening its competitive position [5,6].
3. Valuation Context
   : Elevated Shiller P/E levels are balanced by profitable operations, unlike the dot-com era’s unprofitable startups [2,3].

• Risks
  : Valuation metrics approaching dot-com peaks (Shiller P/E ~40.4 [2]) signal potential volatility.
• Opportunities
  : AI innovation (Gemini3 Pro [1]) and profitable growth drivers support bull market continuation [0,7].

• AI Innovation
  : Gemini3 Pro released Nov 2025, trained on Google’s TPUs [1,5].
• Valuation
  : S&P500 Shiller P/E ~40.4 (dot-com peak:44.2) [2].
• Market Performance
  : Technology sector up 2.08593% (Nov25,2025) [7].
• Alphabet Stock
  : Google (GOOGL) hit all-time high on Nov24,2025 [4].