AI Hype Cycle Deflates: Tech Valuations Return to Pre-Boom Baseline

After soaring during the AI enthusiasm wave, technology company valuations are resetting to pre-boom levels, signaling a market-wide correction in how investors assess startup worth. This valuation normalization may foster more discipline-based investing but creates headwinds for growth-stage companies that leveraged inflated valuations to expand. The shift reflects a maturing market moving from speculative fervor to fundamentals-focused evaluation.