ddress this question of when does the bubble pop, I would point out that valuations among big tech AI companies are high, but they’re not crazy high . The 24-month forward PE ratio of the Magnificent Seven is 27x. In the year 2000, at the height of the tech bubble, the top 10 stocks traded at 52x forward earnings. So I would say, yes, a bubble is... See more

On that template, AI looks like it has already finished the first act. The outer ring has cracked: neoclouds, “AI infra” smaller caps, and nuclear or power-adjacent trades are down 50% or more from their highs. That’s your paper-railway phase. The core of the story, Nvidia and a handful of megacaps, is still treated as the “safe” way to own AI, but

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But despite these concerns and constraints, we still see room for the AI theme to run, either because AI starts to deliver on its promise, or because bubbles take a long time to burst.