Manish Chokhani: AI Stocks in Bubble Zone, Valuations Mirror Dot-Com Bubble

• Veteran investor Manish Chokhani warns that AI stock valuations mirror the 1999-2000 dot-com bubble, despite AI being a transformational technology.
• Chokhani highlights excessive valuations for AI and semiconductor companies, noting that chips degrade quickly and the current capex cycle is unsustainable.
• He suggests that while AI is transformational, the real beneficiaries will be sectors that use AI at scale, rather than the capital providers or many AI companies themselves.
• The investor advises against chasing hype, recommending investors identify businesses that can harness AI productivity to drive profitability.
• Chokhani points out that the NASDAQ took 12 years to reclaim its dot-com peak, indicating that valuation excesses can take decades to correct.

Why It Matters: AI stock bubble fears could lead to significant market corrections.