Pictet Group chief strategist Luca Paolini has pushed back against growing market anxiety that the artificial intelligence investment cycle has entered bubble territory.
In an interview with Die Presse, Paolini argued that the semiconductor sector is not overheated, even after recent price corrections, and defended the valuation premiums currently attached to leading chip designers.
Paolini highlighted a stark valuation disparity to illustrate his point: the coffee chain Starbucks trades at a higher multiple than chip designer Nvidia.
This comparison serves as a counter-narrative to the prevailing fear that AI-related equities are detached from fundamental reality.
By framing the cost of access to AI infrastructure against traditional consumer staples, Paolini suggests that the market is still pricing in the transformative potential of the technology rather than speculative excess.
The strategist’s comments come as investors grapple with mixed signals in the tech sector.