Tech Stocks Flash Dot-Com Era Warning Signs as Nvidia‘s Gains Fizzle
November 24, 2025 – A wave of caution swept through the stock market today following Nvidia’s earnings report, sparking concerns that the artificial intelligence rally may be mirroring the unsustainable exuberance of the late 1990s dot-com boom. Despite exceeding expectations with its latest quarterly results and CEO Jensen Huang’s claim of “off the charts” demand for its Blackwell chip, Nvidia (NVDA) saw its initial gains evaporate, closing the day in negative territory.
This reversal, coupled with a broader market shift, signals a potential peak for growth stocks and a rotation toward value investments across all market capitalizations and global markets. The market’s reaction underscores growing anxieties about valuations in the AI sector, reminiscent of the inflated prices seen before the dot-com bubble burst. Investors are now questioning whether the current AI-driven surge is built on solid fundamentals or speculative fervor.
Nvidia’s earnings, while strong, failed to sustain investor enthusiasm. The stock experienced a momentary rally before succumbing to selling pressure, a pattern analysts attribute to a reassessment of future growth prospects. This dynamic has fueled a discernible “risk-off” sentiment, prompting a sector-wide realignment as investors seek safer havens in value-oriented companies.
The shift away from growth stocks is not limited to the U.S. market; it’s a global phenomenon. This widespread rotation suggests a fundamental change in investor psychology, driven by concerns about economic headwinds and the potential for interest rate adjustments. A potential Federal Reserve rate cut in december coudl briefly reignite ”risk-on” behaviour, but experts predict any such rally would likely be short-lived given the underlying anxieties about inflated valuations.