Image Source: Pixabay
 

In this episode, Mike and Véronique dig into what an AI bubble could look like, how it compares to the dot-com era, and four large-cap tech names that should be able to take a hit without having their long-term story derailed.
 

You’ll Learn

Why “bubble” fears are rising in 2025:
It’s not just hype—AI adoption has accelerated fast, and the market is rewarding winners aggressively. The risk is that expectations become unrealistic and any “less-than-perfect” growth triggers sharp selloffs.

The two real ingredients of an AI bubble:

• Valuations: many AI-linked names trade at premium multiples, leaving no margin for error.
• Profitability: massive spending on AI infrastructure is great… unless the cash never comes back.

How AI today is similar to (and different from) the dot-com bubble:
In the early 2000s, the internet backbone was a real long-term investment—but too much money was spent too fast, and many businesses couldn’t monetize. Mike argues AI has a similar “infrastructure build-out” dynamic (data centers, cloud, power grids), which is where the bubble risk could live.

Mike’s 3 criteria for “AI-bubble-resistant” tech stocks:

• They were already thriving before 2023 (strong fundamentals, solid balance sheet).
• They have other growth vectors beyond AI hype.
• They show a strong Dividend Triangle (revenue growth, EPS growth, and dividend growth over time).

The 4 stocks discussed—and why each has a cushion:

• Microsoft (MSFT): sticky enterprise ecosystem + Azure cloud growth + natural AI integration into software subscriptions.
• Broadcom (AVGO): proven acquisition engine + essential connectivity components + chips that improve computing efficiency (AI or not).
• Apple (AAPL): ecosystem-driven cash machine; less AI hype may actually reduce “bubble exposure,” while their balance sheet gives them options (partnerships or acquisitions).
• Alphabet (Google) (GOOG): dominant ad platforms + multiple growth bets (including Waymo) + a uniquely “vertically integrated” AI stack (chips, data centers, cloud, models).

How to think about diversification inside “tech”:
Mike likes that these picks aren’t four versions of the same thing: devices (Apple), software (Microsoft), semis (Broadcom), and advertising/communications (Alphabet). Different engines, same theme.

Audio Length: 00:33:32

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