DBS Says Nvidia at 17 Times Earnings Shows AI Rally Is No Bubble
Updated
Updated · Bloomberg · Oct 6
DBS Says Nvidia at 17 Times Earnings Shows AI Rally Is No Bubble
3 articles · Updated · Bloomberg · Oct 6
Summary
Nvidia’s 17-times forward earnings multiple suggests the AI-driven tech rally remains well short of bubble territory, DBS Chief Investment Officer Hou Wey Fook said.
Projected 70% earnings growth next year underpins that view, indicating valuations are being supported by profit expansion rather than pure speculation.
Hou contrasted Nvidia with Cisco before the dot-com crash, when the networking giant traded at about 100 times earnings.