We are two to three years into a global AI boom, not a bubble, according to Munro Partners founding partner and chief investment officer, Nick Griffin.
“When I hear the word bubble, I hear valuation bubble. The last time we saw this type of bubble was in 1999, and that was a valuation bubble,” Griffin says.
“The NASDAQ actually went up more than 90 per cent that year.”
But Griffin points out the NASDAQ is up less than 20 per cent this year and the biggest companies in the S&P today, like Google (NASDAQ: GOOG), Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN), are trading at price-to-earnings (PEs) in the mid-twenties, not the 99-to-100-times earnings which were seen during the tech bubble.
