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DBS: Big Techs' Fundamentals Remain Solid, in Absence of AI Bubble
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There is no bubble in the AI sector, Hou Wey Fook, Chief Investment Officer of DBS Bank, opined. At this juncture, the AI industry is underpinned by profit growth, and the fundamentals of large tech companies remain solid, fundamentally different from the internet bubble in 2000. Although substantial ongoing AI capex will deal a short-term blow to tech companies' margins, which will lead to stock price adjustments, the long-term trajectory of double-digit profit growth remains intact. In terms of asset allocation, the bank suggested to seize the AI wave for the 2026 strategy, use physical assets to counter inflation, and seek value opportunities in APxJ markets. Regarding stocks, the bank recommended focusing on markets with bigger valuation discounts and sectors supported by long-term growth drivers. AASTOCKS Financial News Website: www.aastocks.com |
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