By TradingView
Publication Date: 2026-10-05 12:19:00
Nvidia’s (NVDA) valuation may be sending a very different signal about the artificial intelligence boom than increasingly nervous investors assume.
DBS Group Chief Investment Officer Hou Wey Fook argues that the chipmaker’s earnings growth and valuation make comparisons with the dot-com bubble difficult to justify, even after the enormous rally across AI-linked stocks.
Nvidia trades at roughly 17 times its next 12 months of earnings, according to Bloomberg-compiled data, while profits are projected to grow around 70% next year.
That combination sits at the heart of Hou’s argument.
If I describe the poster child of AI trading at mid-teens, how can it be a bubble? Hou said in a Bloomberg TV interview.
He contrasted Nvidia with Cisco Systems during the dot-com boom. Cisco traded at roughly 100 times earnings before the technology bubble burst, dramatically above Nvidia’s current forward multiple.
Hou believes there are still tailwinds to this play on the semiconductor, this play on AI.
The comparison matters because fears of an AI bubble have intensified as investors pour capital into semiconductors, data centers and other infrastructure needed to support generative AI.
Nvidia sits at the center of that spending cycle, making its valuation an important benchmark for judging whether investor expectations have become detached from underlying earnings.
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