"If you're judging whether a bubble exists or not in relation to how stretched or otherwise its valuation is, then there's an argument that the bubble has burst."
"As of fall 2025, there were 498 AI unicorns with a combined valuation of $2.7 trillion, according to data from tech market intelligence platform CB Insights."
"The tech sector has come back down to earth, a result, in part, of the 'SaaSpocalypse,' a rapid selloff of software-as-a-service (SaaS) stocks."
The AI stock bubble has burst, according to John Higgins, chief markets economist at Capital Economics. Valuations in the tech sector have been inflated, but the price-earnings ratio has fallen to its lowest since the pandemic. As of fall 2025, there are 498 AI unicorns valued at $2.7 trillion. However, the tech sector is experiencing a downturn due to the 'SaaSpocalypse,' leading to significant losses for companies like Salesforce and ServiceNow, which have dropped about 30% in value since the year's start.
Read at Fortune
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