DBS CIO: Nvidia (NVDA.US) has a forecast P/E ratio of only 17, AI tech stocks are far from bubble territory
The price-to-earnings ratio of NVIDIA (NVDA.US) and its projected 70% earnings growth next year indicate that AI-driven tech stocks are far from entering bubble territory.
According to Jinse Finance APP, Hou Wey Fook, Chief Investment Officer of DBS Group, stated that the price-to-earnings ratio of Nvidia (NVDA.US) and its expected 70% earnings growth rate next year indicate that AI-driven tech stocks are far from entering a bubble zone.
Data shows that Nvidia's current stock price is about 17 times its expected earnings for the next 12 months. Hou compared this valuation to Cisco (CSCO.US) having a 100x valuation before the internet bubble burst.
“If the benchmark enterprise of AI trading is valued at only a dozen times earnings, how can it be considered a bubble?” he said in an interview, adding that the current momentum in semiconductors and AI remains favorable.
However, Hou still advocates adopting a "barbell" strategy to "control the overall volatility of the portfolio": combining growth tech stocks with investment-grade fixed income products to achieve stable returns, while using hedge funds and gold as intermediate risk diversification tools.
From a market performance perspective, Nvidia's share price reached a new all-time high during Friday's trading session, just one step away from becoming the world's first publicly listed company to surpass a market value of 6 trillion USD. According to media reports, Nvidia and SoftBank have respectively completed the final 10 billion USD investment in the latest round of OpenAI financing, fulfilling their respective 30 billion USD investment commitments. In addition, weaker-than-expected US non-farm payroll data for September led the market to lower bets on a Federal Reserve rate hike in October, boosting the overall strength of tech stocks and further driving Nvidia's share price up.
Nvidia is up about 25% so far this year, with a current market value of approximately 5.6 trillion USD.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Exchange-Traded Funds Rise, US Equities Higher After Midday
01:10 PM EDT, 10/05/2026 (MT Newswires) -- Broad Market Indicators Broad-market exchange-traded funds IWM and IVV were higher. Actively traded Invesco QQQ Trust (QQQ) added 0.6%. US equity indexes were higher after midday Monday as government bond yields rose and crude oil fell. Energy IShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) were each up about 1.1%. Technology The State Street Technology Select Sector SPDR ETF (XLK) gained 0.4%; iShares US Technology ETF (IYW) added 0.6%, and iShares Expanded Tech Sector ETF (IGM) was 0.6% higher. The State Street SPDR S&P Semiconductor (XSD) slipped 0.6%, and iShares Semiconductor (SOXX) fell 0.2%. Financial The State Street Financial Select Sector SPDR (XLF) added 0.7%. Direxion Daily Financial Bull 3X Shares (FAS) advanced 2.2%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 1.9%. Commodities Crude oil lost 1.1%, and the United States Oil Fund (USO) fell 1.4%. Natural gas added 0.9%, and the United States Natural Gas Fund (UNG) gained 0.7%. Gold on Comex eased 0.1%, and the State Street SPDR Gold Shares (GLD) lost 0.4%. Silver was up 1.5%, and iShares Silver Trust (SLV) gained 0.7%. Consumer The State Street Consumer Staples Select Sector SPDR (XLP) was 0.5% higher, and the Vanguard Consumer Staples ETF (VDC) rose 0.5%. The State Street Consumer Discretionary Select Sector SPDR (XLY) added 0.4%. VanEck Retail ETF (RTH) was up 0.2%, and the State Street SPDR S&P Retail (XRT) edged up 0.1%. Healthcare The State Street Health Care Select Sector SPDR (XLV) added 0.5%, while iShares US Healthcare (IYH) gained 0.5%, and Vanguard Health Care ETF (VHT) rose 0.6%. IShares Biotechnology ETF (IBB) advanced 0.7%. Industrial The State Street Industrial Select Sector SPDR (XLI) added 0.4%. Vanguard Industrials Index Fund (VIS) rose 0.5%, and iShares US Industrials (IYJ) gained 0.7%. Cryptocurrency In midday activity, bitcoin (BTC-USD) shed 0.2%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) added 1.2%,
Gold price rises as Europe debt risks boost appeal of haven assets
Morgan Stanley Analyst Says SpaceX Stock Price Could Double
Getlink reports 550,000,000 shares outstanding, 642,851,718 total voting rights as of Sept. 30, 2026
Getlink disclosed 550,000,000 ordinary shares outstanding as of Sept. 30, 2026. Theoretical voting rights totaled 642,851,718. Exercisable voting rights stood at 635,332,063. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Getlink SE published the original content used to generate this news brief via Business Wire (Ref. ID: 202610051200BIZWIRE_USPR_____20261005_BW048564) on October 05, 2026, and is solely responsible for the information contained therein.
Crypto prices
More
