Retail Frenzy Drives Massive Rally in AI-Related Stocks Despite Lofty Valuations
-
Shares of AI-related stocks like Nvidia and Super Micro Computer have rallied 240% and 760% over the past year
-
Arm Holdings' stock has nearly doubled since its latest earnings report, seeming to peg it as a winner in AI
-
The rally seems driven by retail investors rushing to buy Arm stock as an AI play, rather than fundamentals
-
Arm shares now trade at a sky-high 100x estimated 2025 EPS, with valuation being ignored
-
Minimal float for Arm stock, with Softbank owning 90%, may be exacerbating the frenzied rally