The post Market Metrics Suggest the AI Bubble Has Not Reached Peak Stage appeared on BitcoinEthereumNews.com.

TLDR: Search trends show persistent fear around the AI bubble, which historically appears during early expansion phases. Nasdaq returns and valuations remain far below dot-com extremes, signaling a cycle that has not reached mania. Rising margin debt indicates leverage growth, a pattern seen before peaks rather than during collapses. Market gains remain concentrated in mega-cap stocks, not broad participation typical of bubble finales.   The debate over an AI bubble has intensified as technology stocks continue to dominate market performance. New research shared by Bull Theory argues that current conditions do not match historical patterns seen at major market peaks.  Instead, indicators point to an expansion phase rather than an imminent collapse. The analysis draws on valuation metrics, liquidity trends, and long-term bubble cycles. AI Bubble Signals Show Fear and Concentration, Not Euphoria Bull Theory reports that search activity for the phrase “AI bubble” remains elevated on Google Trends. High search interest reflects widespread concern rather than widespread confidence. Historical market cycles show that bubbles tend to peak when public attention fades and belief becomes absolute. Current search behavior suggests the opposite phase, where fear and skepticism remain dominant. https://t.co/jeGEXz1xfw — Bull Theory (@BullTheoryio) February 8, 2026 Nasdaq performance also differs from past mania periods. Over the last five years, the index has risen about 88 percent, far below the twelvefold surge recorded during the dot-com era. Valuation data supports this comparison. Dot-com Nasdaq price-to-earnings ratios reached roughly 60, while today’s Nasdaq trades near 26, according to market datasets cited by Bull Theory. Market breadth further weakens the bubble argument. The S&P 500 equal-weight index has gained only about 10 percent over the past year, showing that gains concentrate in a small group of mega-cap firms. Nvidia, Apple, Microsoft, Google, and Amazon account for most of the rally. Previous bubble…

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Filed under: News - @ February 9, 2026 6:26 am