Why we are not in a bubble... yet

According to Goldman Sachs Research strategists, there are elements of investor behaviour and market pricing currently that rhyme with previous bubbles, including the rise in absolute valuations, high market concentration, increased capital intensity of leading companies and the emergence of vendor financing.

However, they see key differences: First, the appreciation of the technology sector has, so far, been driven by fundamental growth rather irrational speculation about future growth. Second, the leading companies that have seen the strongest returns have unusually strong balance sheets. Third, the AI space has, so far, been dominated by a few incumbents; most bubbles form in a period of huge competition as both investors and new entrants flock into the space.