Damodaran says the AI boom may still bust, but the capex cycle is unlike dot-com
rohanpaul_ai · x · 2026-07-26
Aswath Damodaran argues that an AI boom could still end in a bust, but the cycle differs from the dot-com era.
- He says history suggests there will probably be a bust eventually, but the AI cycle has much larger capital expenditure behind it.
- In his view, that capex is the big difference versus the dot-com boom and bust, which did not feature the same scale of infrastructure spending.
- The post frames the discussion as a comparison between a possible AI bubble and the classic internet bubble.
Related event: Scholar Warns AI Bubble Burst Could Be Worse Due to Heavy Debt Reliance(2 posts)→
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