AI Boom Recalls Dot-Com Bubble; Greenspan's Warning Preceded Nasdaq Surge

The current AI-driven tech rally is drawing parallels to the 1990s dot-com bubble, prompting a re-evaluation of former Federal Reserve Chair Alan Greenspan's "irrational exuberance" warning from December 1996. Despite the caution, the Nasdaq Composite Index subsequently surged 249% over three years before peaking in March 2000, suggesting market bubbles can persist longer than anticipated. Greenspan's 1996 remarks questioned if asset prices had reached unsustainable levels, focusing on economic risk rather than predicting a market top. Data as of June 22, 2026, shows the Nasdaq has gained approximately 65% since re-breaking historical highs in February 2024 due to AI fervor. This increase still lags the 79% rise observed during a comparable period in the 1990s dot-com era, indicating that while market overheating concerns are present, the current AI rally has not yet matched the scale of its historical predecessor.