U.S. Tech Valuations are Booming!

ShayBoloor
04-14 13:43

U.S. tech valuations have compressed from 40x to 20x forward earnings in just weeks and now sit below where they were when ChatGPT launched.

The backdrop is far more real today than it was back then:

• $Meta Platforms, Inc.(META)$ is seeing ~3.5% ad click lifts from AI

• Hyperscalers have committed ~$690B in capex

• $Amazon.com(AMZN)$ AWS AI revenue is running at a $15B annualized pace

• $NVIDIA(NVDA)$ has $1T in Blackwell + Vera Rubin orders through 2027

• Anthropic is valued at $380B and growing revenue 1,400% YoY

The AI economy is the fastest growing capital deployment cycle in the history of technology and getting those multiples back at a lower price than when the cycle was purely speculative is an opportunity.

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