Quilter flags maturing AI trade, urges checklist to gauge bubble risk
QQQ•Leadership broadens beyond the Magnificent Seven
Leadership has broadened beyond the Magnificent Seven, with demand rotating toward semiconductor equipment, memory, and power chip suppliers tied to data-center buildouts.
Token consumption is rising fast, prompting corporate caps that could slow LLM revenue growth, though adoption runway remains “considerable.”
Valuations remain elevated but below dotcom-era levels
Valuations were cited as elevated but not extreme, with tech at about a 20% premium to the wider U.S. market, below dotcom-era multiples.
Quilter says AI trade is maturing rather than entering a bubble phase
Quilter analysis flagged a July pullback in AI-linked tech stocks, arguing the “bubble” narrative overstates the shift in underlying fundamentals.
AI trade is seen as maturing as revenue growth at hyperscalers accelerates alongside surging workplace usage, shifting investor focus toward earnings.
