Equity Mates Investing Podcast The case for and against an AI bubble - Alan Pullen | Magellan
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Nov 13, 2025 Alan Pullen, Portfolio Manager of the Magellan Global Opportunities Fund, shares his insights on the potential AI bubble in today’s market. He delves into significant topics like the signs of speculative behavior and market concentration within the tech sector. Pullen argues for the enduring success of mega-cap companies, emphasizing the strong moats of firms like Microsoft and TSMC, while also recommending focus on durable supply chains. He cautions against generic AI investments and highlights the promise of non-US companies like Nestlé and Adidas as safer bets.
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No Broad Dot‑Com Bubble Yet
- Alan Pullen sees evidence for both a bubble and for justified valuations, so the picture is mixed.
- He concludes there is not sufficient evidence of a broad dot-com style bubble today, only pockets of speculative excess.
Speculation Concentrated In Startups And Data Centers
- Alan highlights speculative excess in AI startups and data-center-related names where FOMO dominates.
- He warns these areas trade on hope rather than durable fundamentals and moats.
Combine Top‑Down And Bottom‑Up Analysis
- Run both top-down and bottom-up analysis to judge market froth and individual stock valuation.
- Be selective: good investments still exist in tech and AI, but you must choose companies with real fundamentals.