AI Stock Surge Echoes and Surpasses 1999 Tech Bubble Risks, Apollo Economist Warns

In a stark warning reminiscent of the late 1990s, Apollo Global Management’s chief economist Torsten Sløk cautioned investors that today’s “AI mania” has pushed tech stock valuations beyond levels seen during the infamous dot-com bubble. Sløk, speaking on Yahoo Finance, highlighted that the ten largest S&P 500 stocks, many driven by AI euphoria, now command extreme price-to-earnings ratios and account for nearly 40% of the index’s value. Echoing similar concerns voiced by BTIG analysts, Sløk suggested the relentless rally in AI-linked equities—spurred by momentum and speculative trading—has heightened the risk of a sudden market correction. Both analysts urge investors to consider defensive strategies, underscoring a notable divide between enthusiasm for AI’s long-term promise and anxiety over frothy valuations and market concentration.

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