The dominance of artificial intelligence stocks in global equity markets is drawing comparisons with the late stages of the dot-com boom, although KB Securities believes the trend may indicate continued strength rather than an imminent reversal.
Analyst Euntaek Lee said in a research note that current market conditions are “largely the same” as those witnessed in 1999, when investors overwhelmingly favored internet-related companies and largely ignored sectors with strong underlying earnings performance.
Lee pointed out that healthcare and financial stocks enjoyed robust earnings-driven gains in 2025 but “have been left out of the rally simply because they are not AI plays.”
The analyst also highlighted similarities in investor sentiment. During the dot-com bubble, stocks frequently rallied on announcements linked to internet strategies, regardless of their earnings prospects.
According to Lee, today’s AI market is exhibiting comparable behavior, with shares “skyrocketing on news of a visit by Jensen Huang, or a hint of forays into AI/robotics, despite the absence of related earnings.”
Rather than viewing the narrowing leadership as a clear signal of market exhaustion, Lee argued that concentration can often accompany the strongest phases of a bull market.
“History shows that, in many cases, rising concentration indicates that the market still has momentum,” he wrote.
Even so, the analyst cautioned that excessive concentration can eventually create vulnerabilities. He noted that “rally broadening is not necessarily healthy” and “may be a sign that the rally is approaching its end.”
For now, KB Securities expects leadership within equity markets to become even more concentrated, following a pattern commonly observed during the final stages of previous speculative booms.
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