Wharton’s Jeremy Siegel Says AI Boom Is No Bubble: 'These Are Real Firms With Real Cash Flows'
Synopsis
In his weekly commentary, Siegel stated that the current rally in U.S. equities is driven by strong earnings from big technology companies in the latest quarter.
Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania’s Wharton School of Business, dismissed concerns of an AI bubble on Tuesday, amid growing concerns of froth in U.S. equities.
In his weekly commentary, Siegel stated that the current rally in U.S. equities is driven by strong earnings from big technology companies in the latest quarter. “Earnings remain the bright spot,” he said.
Siegel added that Big Tech’s latest quarterly prints, and the capital expenditure plans in the artificial intelligence (AI) sector for 2025-26, demonstrate that the current boom in U.S. equities is different from the dot-com boom in 1999. “These are real firms with real cash flows, not concept stocks,” he said.
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