VC Founder Claims AI Isn't in a Bubble: Here's Why He Believes It's Different from the Dotcom Era
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
Updated: Nov 04 2025
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Source: CNBC
Market Sentiment on AI: Investors are debating whether the current enthusiasm for artificial intelligence represents a market bubble, with differing opinions from notable figures like Ray Dalio and Jerome Powell, while venture capitalist Magnus Grimeland argues that the market is not overheating.
Rapid Adoption of AI: Grimeland highlights the swift integration of AI into businesses, contrasting it with the slower transition to cloud computing, and notes that AI is a priority for leaders across various sectors.
Real Revenues Behind Growth: Unlike the dotcom bubble, Grimeland points out that many AI companies are generating substantial revenues, citing OpenAI's $10 billion annual recurring revenue and Lovable's rapid growth.
Opportunities for Smaller Companies: Despite the dominance of large firms in the AI sector, Grimeland believes there are significant opportunities for smaller startups to thrive, especially those with strong founding teams and positive growth indicators.
Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Wall Street analysts forecast GOOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Current: 330.840
Current: 330.840
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
