News linked to both this project and an event.
"White-Haired Stock Guru" Serenity posted on X platform, stating that traditional value investing appears to have entered a "hibernation period." In the past, investors would look for companies with P/E ratios of 10 to 12 times, slow growth but able to compound value through cash flow buybacks and dividends. Now the market has even seen companies with a P/E ratio of just 1.8 times and revenue growing 605.24% year-over-year, and the main thing investors need to discuss is how long the growth can last. In addition, Sumitomo of Japan has a P/E ratio of only 16.2 times, but it has a large number of long-term agreements with hyperscale cloud service providers in its AI-related businesses, from optical fiber to lasers.Serenity believes that AI has created a greater valuation mispricing in the medium term, gradually shifting "value investing" toward high-growth "deep value" companies.
Apollo Chief Economist Torsten Slok issued a risk warning, stating that major AI companies are heavily borrowing for industrial expansion, with the total scale of related bond issuance estimated to reach $700 billion. This massive new supply is diverting market funds, creating a significant crowding-out effect on U.S. Treasuries and other credit products.Torsten Slok stated that if the scale of debt financing for AI infrastructure continues to expand, the overall capital allocation logic in the bond market will undergo a restructuring, persistently suppressing demand for U.S. Treasuries while exerting medium- to long-term pressure on the liquidity of the entire credit market.
: Billionaire investor and founder of hedge fund Third Point, Dan Loeb, stated in a podcast that current market concerns over an AI "bubble" are greatly exaggerated, and the development phase of the AI industry is completely different from the dot-com bubble era.Loeb pointed out that the combined capital expenditures of tech giants including Alphabet, Microsoft, Amazon, and Meta have already exceeded $700 billion this year, and could reach $1 trillion next year, with the vast majority allocated to AI infrastructure construction. He indicated that not believing these capital expenditures can yield returns is equivalent to believing these companies are "burning cash for nothing," but currently these companies have strong profitability and ample cash flow, allowing them to rely on their own balance sheets to support investments.Loeb emphasized that this is different from the dot-com bubble period when "valuations were detached from fundamentals," and does not constitute a traditional valuation bubble. He also noted that AI companies like Anthropic are experiencing rapid revenue growth and accelerating product deployment, indicating the industry is still in its early expansion phase.According to reports, Anthropic's latest funding round valuation has approached nearly $965 billion, with annualized revenue surging from $14 billion to $47 billion, further strengthening market confidence in the commercialization potential of AI.However, some investors in the market, including Michael Burry, have expressed concerns about AI valuations overheating, believing that massive investments may struggle to generate corresponding returns. Loeb stated, "We haven't even scratched the surface of AI development," and believes it remains in the early stages of long-term growth. (BusinessInsider)