Federal Reserve Chair Jerome Powell said on Wednesday that the artificial intelligence boom is different from the dotcom bubble of the late 1990s.

"This is different in the sense that these companies, the companies that are so highly valued, actually have earnings and stuff like that," Powell said, during a news conference following the Fed's two-day policy meeting .

AI investments in data centers and chips are also a major source of economic growth, he said. In the dotcom era, numerous companies raced to big valuations before going bankrupt due to hefty losses.

Powell didn't name specific vendors, but chipmaker Nvidia has emerged as the world's most valuable company, surpassing $5 trillion in market cap. The rally has been driven by the company's graphics processing uni

See Full Page