As 2025 comes to a close, voices questioning the strength of the current stock market rally driven by Artificial Intelligence (AI) are growing. Some analysts warn that the wave of investment and innovation in AI could be creating a bubble comparable to the dot-com era, alerting to deeper risks than the usual market corrections. However, from our perspective, the debate remains open and deserves a more nuanced analysis. The main concerns revolve around high valuations and apparent overinvestment. Nevertheless, there are solid arguments to put both points into perspective. Regarding valuations, the major tech companies in the S&P 500 are trading at a P/E ratio of 30 times, far from the historical highs reached in other bubbles (such as 52 times during the dot-com era or 67 times in the Japanese bubble). Although the profitability of these companies could be pressured by competition and the need for greater investments, this does not necessarily predict a stock market collapse, but rather a rotation towards other sectors, which can benefit active investors who avoid concentration in megacaps. Concerning the supposed overinvestment, projections estimate that investment in data centers will reach $3 trillion between 2022 and 2030. Conversations with companies in the sector confirm tangible advances in AI adoption, although it is expected that some of that capital will not generate the anticipated returns. This phenomenon is not exclusive to AI: in sectors like pharmaceuticals or energy, failures are common, but they are part of the innovation process. Even assuming a 30% failure rate and a 20% return on successful projects, the necessary sales volume is high but not disproportionate when compared to the size of global markets in technology, defense, media, or subscriptions. The key question is whether AI can contribute to growth or savings equivalent to 1% of global GDP in the next five years. After analyzing multiple sectors, the answer seems affirmative: AI has the potential to transform industries and generate real value while keeping feet on the ground. An additional factor supporting AI development is the availability of funding. So far, most of the investment comes from the operating cash flows of large tech companies, led by founders with a long-term vision and willing to take significant risks. This is complemented by the strategic importance of AI in the geopolitical arena, ensuring sustained financial backing from governments and corporations. In conclusion, it is premature to claim that AI is in a bubble. There is no need to adopt extreme positions in investment decisions, especially if one opts for active and diversified management. The evolution of AI will continue to be marked by innovation, competition, and financial backing, factors that, for now, maintain its momentum. Source: eleconomista.es