TECH BUBBLES & HYPE CYCLES

Market Speculative Exuberance from the Late 1990s to Present

Nov 24, 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?

What does the market define as a bubble?

A bubble can refer to either a physical object or several abstract concepts - social and economic. However, the market’s definition of a bubble is an economic and financial concept.

It describes a bubble as a situation where the price of an asset rises sharply above its intrinsic value due to exuberant market behavior or speculation. This rise is usually unsustainable, and when reality catches up—such as when investors realize the prices don’t reflect the actual value—a rapid decrease in prices, or a “burst,” often follows.

No matter which reference of a bubble you choose to look at, it usually depicts an unstable structure or situation that is temporary and susceptible to bursting or collapsing when external conditions change.

Why focus on technology bubbles?

Not to date myself here but I have lived through, participated in and been influenced by some if not most of the bubbles we will be discussing today. I have listened to experts’ debate, market forces define and, in some cases, participated in the hype cycles of the tech industry since the first dot-com burst of the late 1990s to the present.

As a tech innovator and considered as an expert in some areas of technology, I have come to form my own opinions either through participation, observation or interaction with some of the technologies and concepts that became bubbles and hype cycles.

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

Growing up in the internet age, I experienced life both before and after the internet’s widespread adoption. This era marked a critical turning point for companies and businesses transitioning from analog systems to digital connectivity. As a result, businesses achieved staggering valuations despite many lacking substantial revenue streams from the internet. The dot-com bubble quickly emerged; within a few years and after record-breaking spending, the inevitable crash arrived. Those who remained careful or exited early were spared the financial fallout of the millennium.

After 2000, another wave of market bubbles and hype cycles followed. The burst led to a new rush for clean fuels, and only a few companies emerged as true champions of the internet age. Social media began to dominate daily life, especially in countries where infrastructure could support affordable internet access. Then came the rise of “Big Data”: companies made lofty promises of massive returns but delivered very little in practice.

What was the issue? The industry lacked the infrastructure to store such enormous volumes of data, and efficient analysis remained out of reach. I remember joining a big data competition and realizing that these promises would be difficult, if not impossible, to fulfill—yet businesses sold them as achievable within the next quarter. The “Vs” became industry buzzwords and central talking points about the opportunities and challenges that big data presented.