Bloomberg Surveillance · Monday, July 6, 2026
Andrew Slimon of Morgan Stanley argues that concerns about an AI bubble are overstated, stating that valuations are not extreme because the market recognizes the cyclical nature of current earnings. He advises investing in areas of scarcity, such as memory and computing power, where demand outstrips supply.
“And again I go back to, well, if I look at the memory names, right, what's a bubble if you think about a bubble, But bubble is excessive expectations of growth and excessive valuation.”
“And the market knows that this is potentially cyclically high earnings. So the market isn't getting over at SKI and overpaying for their earnings. So I think, I think the uh, you know, the reality is this is going to go longer than people think.”
“Invest into scarcity. What does that mean, Well, there's a scarcity of memory, there's a scarcity of computing power out there. You want to invest in areas where there is more demand than supply, and I think those are two areas where there is more demand than supply currently.”