DBS CIO says Nvidia valuation proves AI stocks not in a bubble

DBS Group Chief Investment Officer Hou Wey Fook argues that artificial intelligence-driven technology stocks are not in bubble territory, citing Nvidia's (NVDA) current valuation as evidence. The chipmaker's price-to-earnings multiple and projected earnings growth for the next year support this view.

Nvidia is currently trading at 17 times its 12-month forward earnings, a figure that Hou believes does not indicate speculative excess. This assessment contrasts with concerns that the rapid rise of AI-related stocks could lead to an unsustainable bubble.

The comments come amid growing interest in AI technologies and the companies that power them. Nvidia, a leader in AI hardware, has seen its stock price surge as demand for its products has increased. Hou's perspective suggests that the company's valuation remains grounded in fundamentals rather than speculative frenzy.