Nvidia’s CEO Says There’s No AI Bubble: Here’s What the Numbers Say | The Motley Fool

Since early November, fears of overvaluation have dragged on tech stocks. As major investment banks warned of possible corrections, the tech-heavy Nasdaq Composite (^IXIC 2.17%) has been volatile while also relatively flat since October 2025. In the three months since, it’s gone from 23,348 to 23,461 — a gain of less than half a percent.

Meanwhile, Microsoft‘s 10% share price plunge after the release if its Jan. 28 earnings report, despite growing profits by 60% year over year, shows how high expectations for tech companies have become in the age of artificial intelligence (AI).

For anyone old enough to remember the dot-com collapse, the nervousness is understandable. In March 2000, the Nasdaq began what became a years-long sell-off that fell as much as 77%, with then tech darlings like Cisco Systems (CSCO +1.98%), Intel, and Oracle collapsing by even more.

When a stock falls by 80%, it doesn’t need an 80% rebound to break even; it needs a 400% gain. Buying on the eve of a bubble’s collapse can wreck investors — at least those without risk management strategies such as stop-loss orders in place — so it’s understandable how, with the tech rally now in its fourth year, overvaluation fears are front and center.

Image source: Getty Images.

The fear is acute enough that Jensen Huang, the CEO of…