AI/Tech Bubble Talk Overdone?!

Bilal Hafeez

Bilal Hafeez

— 1 min read
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(My second test of this new platform!)

I trawled through a ton of research recently and three things stood on AI/Tech:

1) Massive debt-funded capex, but there is still some free cashflow! (Chart 1)

2)Big tech could become the dominant sector (overtaking banks) in credit markets. Chart 2 shows that banks are currently the biggest segment of credit indices, but tech could soon overtake. Interesting that Amazon is biggest tech issuer.

3) Good news for tech/equities is that stock prices have been driven by earnings, rather than multiple expansion. (Chart 3).

Makes me less nervous about the doomer/bubble scenarios for AI/tech

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