The Flip Side Is the AI investment cycle a sign of history repeating?
20 snips
Oct 2, 2025 
Venu Krishna, Head of US Equity Strategy at Barclays, dives into the explosive growth of AI investment and the almost $400 billion in capex from hyperscalers this year. He discusses whether current valuations are justified, drawing comparisons to past tech booms. The conversation also addresses potential risks like stranded assets and infrastructure constraints, plus the implications of a pullback in AI spending on US equities. This lively debate leaves listeners pondering if we’re witnessing another bubble or a genuine technological revolution.
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AI As The Central Investment Narrative
- AI is the defining investment theme and could match past tech revolutions like cloud and mobile.
- Fear of missing out has concentrated capital into U.S. AI innovators and driven narrative-led flows.
Massive CapEx Sparks Dot‑Com Comparisons
- Massive hyperscaler capex and lofty valuations raise bubble comparisons with the dot-com era.
- Yet Venu argues current multiples and fundamentals differ from 1999 tech extremes.
Valuations High But Fundamentals Stronger
- Hyperscalers trade at ~29x forward earnings but show stronger fundamentals than dot‑com telcos.
- CapEx-to-sales sits near 25%, below the telco bubble's 40% peak according to Venu.