Wharton professor Jeremy Siegel believes that although AI stocks may be slightly overvalued in the long term, it is impossible to predict their peak in the short term due to the momentum that can carry stocks far higher than their fundamental value. Siegel contrasted the current AI boom with the dot-com bubble of the 1990s, stating that current companies have actual earnings whereas the dot-com companies did not. Siegel also believes that the S&P 500 could benefit from the banking turmoil that has unfolded over the past few months because mega-cap tech stocks have credit availability. Nvidia, a chip-maker company, recently reported earnings that Siegel described as blowout, and he believes that the top eight or nine companies in the S&P 500 have accounted for all of the gains this year, with the other 490 companies either flat or down.
Nvidia is a chip-making company that provides GPU devices for gaming and professional uses. The company’s products accelerate data and graphics processing in various fields, including gaming, automotive, and professional visualization. Recently, Nvidia reported blowout earnings.
Jeremy Siegel is a finance and investment professor at The Wharton School of the University of Pennsylvania. Siegel is a well-known author and commentator on macroeconomic issues and personal finance. He has written several books, including Stocks for the Long Run, which provides advice for investment strategies.
