Artificial intelligence (AI) stocks may be in a bubble, but they are still worth owning for long-term investors, according to Anthony Scaramucci, the founder of SkyBridge Capital, BNN Bloomberg reports.
Scaramucci acknowledged the boom-bust cycles in the AI sector but emphasized the presence of high-quality AI stocks that are worth owning. He cited Nvidia Corp. as an example, stating that while it may be overvalued currently, it would likely be a good investment over the next 15 years.
“There are boom-bust cycles. AI’s probably in a bubble but there’s some high-quality AI out there that’s worth owning,” Scaramucci said.
Nvidia shares have seen a surge of 179% this year as investors anticipate its rapid growth as a key player in the advancement of AI. The stock currently trades at 53 times analysts’ estimates of adjusted earnings for the current fiscal year.
Scaramucci stressed the importance of patience for long-term investments, drawing parallels with early internet winners like Amazon.com Inc. Despite the fluctuations over the years, Amazon has proven to be a great investment in the long run.
“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.”
Earlier this year, Bloomberg reported that SkyBridge’s biggest fund suffered a 39% loss in 2022 due to poor bets on cryptocurrencies and the now-bankrupt platform FTX. The firm has since imposed new limits on client withdrawals per year.
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
(Additional reporting provided by Benzinga Newsbot)
Edited by Suparba Sil and Saba Fatima
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