See signs of exuberance in AI stocks, but not a bubble yet: Bank Julius Baer’s Mark Matthews

Mark Matthews of Bank Julius Baer & Co said the technology-led market shows signs of exuberance, but it is not a bubble. “Exuberance, yes, but this is something that I think can continue to persist,” he said, citing Nvidia as an example. The stock trades at about 32–35 times next year’s earnings, higher than the S&P 500’s long-term average of 15 times. Matthews added, “A bubble is something you start talking about above 40, maybe even above 50 times P/E.”

He noted that while artificial intelligence (AI) spending may exceed short-term…