🔥 The biggest risk in this round of AI bull market is not overestimating AI, but underestimating it.

Many investors are still accustomed to comparing today's AI market conditions with the 2000 internet bubble.

However, after recently reading reports from $Morgan Stanley(MS.US) and $HSBC Holdings(HSBC.UK), my view has become even more firm.

$Morgan Stanley(MS.US)'s view is:

The AI bull market is not over; what has really changed is the pace of capital flow.

Over the past few months, AI infrastructure sectors such as GPUs, semiconductors, storage, and networking have seen huge gains, becoming one of the most crowded trades in the market.

Therefore, short-term capital has begun to rotate into lagging sectors like consumer goods and transportation, and the AI sector may enter a phase of high volatility and wide fluctuations.

But this is a capital flow behavior and does not indicate a turning point in AI fundamentals.

$HSBC Holdings(HSBC.UK) provides another set of data worth considering.

Many people think AI stock valuations are already too high, but the reality may not be so.

According to $HSBC Holdings(HSBC.UK)'s statistics:

• $NVIDIA(NVDA.US) has a forward P/E of less than 20x for the next 12 months, approaching the low end of the past decade.

• $Broadcom(AVGO.US) is around 20x.

• $Micron Tech(MU.US) is only about 10x.

In contrast, some traditional consumer giants, such as $Costco Wholesale(COST.US), $Walmart(WMT.US), $Monster Beverage(MNST.US), and $Hilton Worldwide(HLT.US), have forward P/E ratios approaching 40x, with valuations significantly higher than many AI leaders.

What truly deserves attention is that AI demand has not cooled down.

Agentic AI is driving continuous expansion of data centers, and GPU, HBM, networking, storage, and power infrastructure remain in short supply.

There are currently no clear signs of a significant slowdown in AI capital expenditure by global cloud providers and large enterprises.

The market has been waiting for the AI bubble to burst.

But industry fundamentals have repeatedly exceeded market expectations.

The view has never changed.

I believe the AI bull market is far from over.

What we see now is more like capital rotation and valuation digestion, not the end of an industry cycle.

As long as AI leading companies can continue to deliver on profits, cash flow, and demand growth, there is still potential for further valuation increases in the future.

Of course, this does not mean all AI stocks will continue to rise. The real beneficiaries are more likely to be those industry leaders with sustainable profitability, technological moats, and pricing power, not all companies labeled as AI.

Do you think this round of AI market will ultimately replay the internet bubble, or become the biggest industrial upgrade cycle of the next decade?

🔔 Will continue to share long-term research on AI, semiconductors, and the next-generation tech industry. Welcome to follow.

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