AI stocks rise backed by real profits, not an illusionary bubble

Recently, Federal Reserve Vice Chairman Jefferson commented that the booming AI concept stocks in the market are not purely speculative, but are based on tangible business returns. This statement provides policy-level support for the continuously heating AI stock market.

The Fundamental Difference Between the AI Industry and the Internet Era

Jefferson emphasized that the current prosperity of AI stocks is fundamentally different from the internet bubble of the late 1990s. During that era, company valuations often diverged from fundamentals, and the market was filled with speculative sentiment. In contrast, current publicly listed AI-related companies are beginning to generate substantial actual revenue and profits, which form the core foundation supporting stock prices.

In other words, investors are betting not on a vague future concept, but on visible and tangible performance growth. This difference greatly reduces the likelihood of repeating past tragedies.

Risk Assessment Still Contains Uncertainty

However, Jefferson also cautiously pointed out that accurately assessing how artificial intelligence will reshape the labor market structure, impact price levels, and have long-term effects on monetary policy is still premature. This means that regulators remain cautious about the profound impact of the AI industry.

The rise of AI stocks is traceable, but market variables remain complex, and investors need to respond rationally.