2000 was built on promises. Companies with no revenue and no product were raising billions on the idea that the internet would change everything but the infrastructure wasn’t ready and the demand wasn’t real. Way too much supply and not enough adoption. That was overcapacity built on hope.
2025 is the exact opposite. This time the demand is real and the world doesn’t have enough capacity to meet it. The AI economy is hitting physical limits in power, chips and data movement with hyperscalers are racing to build new data centers, upgrade transmission grids, and expand fabrication but even with record spending they’re still behind. That’s not a bubble but more of a supply squeeze.
In 2000 the market was pricing in future demand that never arrived. In 2025 the market is struggling to price the scale of demand that already exists. $Alphabet(GOOGL)$ , $Microsoft(MSFT)$ , $Amazon.com(AMZN)$ , $Meta Platforms, Inc.(META)$ & $Oracle(ORCL)$ are deploying real capital and generating record free cash flow while doing it. This is the largest coordinated capex cycle in modern history that's spanning across semiconductors, power and industrial materials.
Every part of the stack is constrained. We don’t have enough wafers, transformers or cooling systems. We don’t have enough copper, lithium, or rare earths. We don’t even have enough land in the right locations with grid access. These are physical bottlenecks that take years and trillions of dollars to solve.
This is why valuations are rising. It’s not euphoria but just scarcity pricing. The market is starting to understand that compute is the new oil and the producers of power, chips and connectivity are the new energy majors. Growth doesn’t stop until those constraints are resolved.
So when people call this a tech bubble, they’re missing the difference between speculation and transformation. The dot-com era priced in what might happen.
A screenshot from a Fox Business news broadcast titled Finding Investment Opportunities in AI features a split-screen format with market data on the right side displaying indices like S and P 500 at 6211.16 up 1.72 percent Dow at 42867.03 up 1.05 percent Nasdaq at 20071.04 up 2.35 percent and individual stocks such as GameStop Corp at 23.75 up 0.40 and Barnes Group at 0.48 down 0.32. The left side shows two men in a studio one in a purple suit standing at a desk with an AI Utility Theme graphic highlighting M E B and E T and the other seated wearing a beige vest speaking into a microphone with a neutral background. The overall composition includes news tickers at the bottom and branding elements for Fox Business.
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