Before You Conclude the AI Era Won’t End Like the Dot-Com Era Did, Check Out These 2 Charts

Market analysts often worry about potential market calamities, but they must account for risk to have a satisfying investment experience. Nvidia, led by Jensen Huang, is competing with Qualcomm and MediaTek by launching a new 2-nanometer chip, which could impact QCOM stock. Comparing the S&P 500 Index, the Nasdaq-100 Index, and the U.S. 10-year Treasury Bond rate from 2000 and 2026 reveals a striking resemblance between the two periods.

SPY has struggled to break a flat plane, while QQQ experienced a 64% decline from 2000 to mid-2003. The 10-year bond yield only saw a 1% decrease during that time. If a similar decline occurred in 2026-2027, SPY could drop 28% to around $550, and QQQ could plummet more than 40% to $260, while the 10-year bond rate could rise by 15%-20%. Investors should consider these "what if" scenarios to manage their risk effectively.