The David Lin Report Why Big Tech Is Bleeding: Fund Manager Reveals Best Stocks During ‘Bubble’ | Stephen Yiu
Apr 30, 2025
Stephen Yiu, CIO of Blue Whale Growth Fund, shares his insights on the tech sector's valuation reset during economic uncertainty. He argues that Nvidia is still undervalued and stresses its role in the AI arms race against big tech. The conversation dives into defensive investment strategies, highlighting lower-risk stocks in the current climate. Yiu also examines challenges facing giants like Tesla amid rising competition and discusses the significance of consumer behavior and pricing power for future growth.
AI Snips
Chapters
Transcript
Episode notes
Tech Valuation Reset Insight
- Tech valuations are resetting amid global economic uncertainty and tariff risks.
- Investors are moving capital from US technology to European and Asian equities for differentiation.
Big Tech Faces Indiscriminate Sell-Off
- Big tech stocks experienced indiscriminate selling due to ETF and index fund redemptions.
- Larger companies are sold more heavily relative to their market weight.
NVIDIA and Semiconductor Value Case
- Nvidia's forward P/E of about 20 suggests it's undervalued given expected AI-driven growth.
- Semiconductor equipment stocks like LAM Research trade cheaply but benefit from government subsidies.