As we see in the semiconductor chart below, the AI bubble is really just a continuation of the pandemic (work-from-home) cloud computing bubble. What we see in the lower pane is that Tech as a share of the S&P never reset after the pandemic, it has continued to grow far larger than the DotCom bubble. At minimum we can expect a 50% retracement as occurred in 2022.
It took a mere 2 years after the 2021 high for semiconductors to make a new high in 2023 whereas in Y2K it took 20 years to make a new high - ironically in 2020 during the pandemic.
