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Lars Tvede: The AI bubble will come sooner or later, but it's not here yetDevelopments
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Oct 22
East Money
Lars Tvede: The AI bubble will come sooner or later, but it's not here yet
Danish investor Lars Tvede, author of "The Economic Cycle That Can't Be Escaped," believes the AI bubble will come sooner or later, but we are not currently in a bubble: Nvidia's forward P/E ratio is about 18 times, compared with about 200 times when Cisco peaked in 2000. He points out that the bottlenecks constraining AI development lie in upstream chip shortages and power grid connection queues, and believes that chipmakers' current prices are "absurdly low" and worth watching over the next three to five years.