Based on one estimate, empowering software and systems to make split-second decisions without human oversight is a $15.7 trillion global addressable opportunity by 2030. History shows that next-big-thing technologies have a checkered past. Artificial intelligence stock valuations are a cause for concern as they paint a grim picture with potentially unsustainable P/S ratios. Approximately 30 years ago, the internet revolutionized corporate America, leading to new sales channels and marketing opportunities, paving the way for the retail investor revolution.

Investors have seen hyped trends come and go, but artificial intelligence appears to be the long-awaited successor to the internet. The potential for AI to add $15.7 trillion to the global economy by 2030 has led to explosive growth in trillion-dollar AI stocks like Nvidia and Broadcom. However, historical headwinds suggest that the artificial intelligence bubble may burst in 2026.

Valuation metrics, such as price-to-sales ratios, indicate that leading AI stocks are trading at unsustainable levels. The second priciest stock market on record, coupled with aggressive premiums for growth stocks like Nvidia, Broadcom, and Palantir, raises concerns about a potential correction in 2026. Competitive pressures could further impact these AI market leaders, potentially leading to a burst in the AI bubble.

Investors considering investing in Nvidia should take note of historical trends and valuation metrics. The Motley Fool Stock Advisor analyst team has identified the 10 best stocks to buy now, excluding Nvidia. With a total average return of 1,018%, Stock Advisor has outperformed the S&P 500. It’s crucial to stay informed and consider all factors before making investment decisions in the AI market.

Read more at Nasdaq: Prediction: The Artificial Intelligence (AI) Bubble Will Burst in 2026. Here’s Why.