Excess Returns · Friday, October 30, 2026
Jay pushed back against the narrative that artificial intelligence is in a speculative bubble, characterizing the current market environment as a 'reverse bubble.' He pointed out that many stocks in the AI ecosystem are trading at massive discounts relative to their growth and peg ratios compared to historical tech bubbles like the late 1990s.
“You know, everybody says, oh, well, there's an AI bubble. I'm like, there's an AI reverse bubble. There's like so many cheap stocks out there trading at huge discounts to their Peg ratio.”
“Like if you want a bubble, go back to the late 90s, like the AOL time Warner was trading on like 500 times earnings or some crazy thing like that.”