Part 3: TECH BUBBLES & HYPE CYCLES

Market Speculative Exuberance from the Late 1990s to Present

Nov 26, 2025

Is the AI bubble the latest in a trend of bubbles, hype cycles and bursts that have characterized the tech industry since the late 1990s?

As the market rallies around AI and adjacent companies, one may wonder if this is unprecedented or history repeating itself. I want to take a step back and explore major bubbles and hype cycles while attempting to answer the question - what next?

See parts 1 & 2 for previous opinion pieces

My aim with this article is to let you see the precedent, recognize the trends, read my opinion on the matter and possibly come to your own understanding.

The list

Opinion Piece

If the cannabis stock bubble was a bet on future revenue without real products, the cryptocurrency bubble is speculation on steroids. Driven by retail investors and meme culture, it has become the poster child for decentralization without the infrastructure or industry acceptance it claims to disrupt.

In the world of digital currencies—Bitcoin, Ethereum, Tether, Binance Coin, and XRP—market value constantly shifts with changes in circulating supply and price. These leading tokens have emerged as relative stabilizing forces, with some designed to be pegged to fiat currencies.

Artists, not to be outdone by the financial sector, rushed to mint Non-Fungible Tokens (NFTs). Perhaps fueled by pandemic-era boredom or simple curiosity, investors spent millions on NFTs—a cryptographic receipt that says a piece of digital work on the internet belongs to whoever bought it on a marketplace or to its creator. If that sounds confusing, you are not alone.

The technology itself has real potential and deserves credit, but extreme speculation choked it at birth. Then came the SPAC/“everything bubble”: shell companies raising billions for acquisitions with minimal due diligence, a trend enabled by low interest rates. This left many investors holding dried lemons, much like the gold rush era when landowners held on simply because a neighbor had struck metal and they hoped to be next.

As I sit in my room, looking out at the Chicago skyline and listening to news anchors and podcasters argue over whether we are in an AI bubble, I can’t help thinking: we will know the true winners of this AI race as soon as this bubble finally bursts.