Hou Wey Fook | Bit.Fan

DBS CIO says Nvidia valuation suggests AI-led tech stocks are still far from a bubble

DBS Group Chief Investment Officer Hou Wey Fook said Nvidia’s valuation and its projected 70% earnings growth for next year indicate that AI-driven technology stocks are still far from bubble territory. He pointed to Nvidia’s 17x price-to-earnings ratio over the next 12 months, a level he said remains well below the roughly 100x multiple seen in Cisco Systems before the dot-com bubble. Hou used that comparison to argue that current AI-related equity valuations have not yet reached the extremes associated with past market excess. He also recommended a barbell strategy as a way to manage portfolio volatility. The comments were cited by ChainCatcher in a short market update.

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DBS

28 days agoNews Editor

DBS CIO says AI-led earnings continue to support tech stocks, while high-grade bonds above 5% look attractive

DBS Group Chief Investment Officer Hou Wey Fook said earnings growth driven by artificial intelligence continues to support major technology stocks. He also said investment-grade bonds yielding more than 5% offer an attractive source of income and add stability to portfolios. Hou made the remarks during an interview on Bloomberg’s "Insight" program with Haslinda Amin. The comments point to a split preference between growth exposure through large tech names and defensive income through higher-quality fixed income. Bloomberg Technology was cited in the original report.

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