Economist Dismisses AI Bubble Fears: Says Disruptive Technologies Might 'Be Antidote To The Headwinds Of Today'
Portfolio Pulse from Piero Cingari
Economist Jeffrey Roach from LPL Financial dismisses fears of an AI bubble burst, emphasizing the productivity gains from AI and other disruptive technologies. Despite a recent semiconductor sell-off led by Nvidia Corp. (NASDAQ:NVDA), Roach believes the market is fundamentally different from the late-1990s tech bubble, with lower valuations and higher quality companies. He predicts a potential market pullback in the second half, offering buying opportunities, and maintains a positive long-term outlook for AI-driven productivity gains.
June 25, 2024 | 4:08 pm
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Nvidia Corp. (NASDAQ:NVDA) experienced a significant sell-off, dropping over 13% from last week's record highs. Despite this, economist Jeffrey Roach emphasizes the long-term productivity gains from AI and dismisses fears of an AI bubble burst.
The recent sell-off in Nvidia's stock is a direct reaction to growing investor concerns about a potential AI bubble. However, Roach's positive long-term outlook on AI productivity gains may mitigate some of the negative sentiment in the short term.
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