The U.S. stock market's recent surge, fueled by the promise of artificial intelligence, is drawing comparisons to the dot-com bubble of the late 1990s. This has raised concerns about another overvaluation scenario.

What Happened: The current stock market rally, largely attributed to the excitement surrounding AI, has sparked memories of the dot-com bubble, reported Reuters. The S&P 500 index has hit new highs, rising over 50% from its October 2022 low, while the Nasdaq Composite index has seen a 70% increase since the end of 2022.

Despite this, stock valuations and investor enthusiasm have not yet reached the levels seen during...