(Bloomberg) - Artificial intelligence stocks are likely in a bubble but long-term investors “should probably own some,” SkyBridge Capital Founder Anthony Scaramucci said.
“There are boom-bust cycles. AI’s probably in a bubble but there’s some high-quality AI out there that’s worth owning,” the financier said on BNN Bloomberg Television in Toronto. Nvidia Corp. may be overvalued right now, he added, “but if you own it for the next 15 years, you’ll probably be OK.”
Nvidia shares have surged 179% this year as investors bet it will enjoy years of rapid growth as an essential player in the advance of artificial intelligence. The stock trades at 53 times analysts’ estimates of adjusted earnings for the current fiscal year, according to data compiled by Bloomberg.
Patience is key, Scaramucci said, comparing it to early winners of the internet era. “I owned Amazon for the last 25 years. At any point over that trajectory, it’s been a terrible or wonderful investment. But when you step back, it’s actually been a wonderful investment.”
Bloomberg reported in January that SkyBridge lost 39% in its biggest fund in 2022 because of bad bets on crytocurrencies and now-bankrupt platform FTX. The firm imposed new limits on the number of withdrawals clients can make in a year.
“I tease my clients and say everybody’s a long-term investor until they have short-term losses,” Scaramucci said.
By Curtis Heinzl
