New York, 26 September 2026 – The argument over whether artificial-intelligence shares are in a bubble is becoming a test of earnings discipline rather than a contest of dramatic market labels. A recent US market commentary presents the bullish case by contrasting today’s profitable technology leaders with many unprofitable companies at the height of the dotcom boom. That comparison is useful, but it does not prove that current prices will deliver attractive returns.
The core distinction is cash-generating capacity. Large cloud and chip companies have established businesses and resources to fund substantial AI spending. Their revenue bases are not equivalent to the speculative start-ups that dominated parts of the late-1990s market. Yet profitability today and the profitability of a specific new investment are separate questions. Investors still need to determine whether additional data centres, chips and software produce returns above their cost of capital.
Unlock the Full Article
This article is exclusive to The Ledger Asia Subsribers / PAID members.
Already have an account? Log in here
