People have been arguing about whether Big Tech and AI stocks are in a bubble or not.
And recently I came across a [Goldman Sachs note](https://www.goldmansachs.com/pdfs/insights/goldman-sachs-research/25-years-on-lessons-from-the-bursting-of-the-tech-bubble/redaction.pdf) from back in Apr 2025 that compared this market to earlier “bubble” periods to the dot-com era, Japan in the late 80s, and the old Nifty 50 names.
One table (Exhibits 7) shows the current “Magnificent 7” (AAPL, NVDA, MSFT, AMZN, GOOGL, META, TSLA) trading around **23× forward P/E**, while the 2000 tech leaders were at **52×**.
Another table (Exhibits 8) points out they’re way more profitable and have cleaner balance sheets (ROE about 44% vs 28% back then, and most of them sit on net cash).
Not saying I fully agree, but it’s an interesting comparison.
What do you guys think about this? Here's the link to the paper: [https://www.goldmansachs.com/pdfs/insights/goldman-sachs-research/25-years-on-lessons-from-the-bursting-of-the-tech-bubble/redaction.pdf](https://www.goldmansachs.com/pdfs/insights/goldman-sachs-research/25-years-on-lessons-from-the-bursting-of-the-tech-bubble/redaction.pdf)