Japan's largest technology fund said that AI stocks are not in a bubble stage and there is further room for increase.

The largest technology fund in Japan has stated that there is no bubble in artificial intelligence stocks and there is still room for further growth. The artificial intelligence market is "just entering the second development stage," according to Yasuyuki Fukuda, Chief Portfolio Manager of the Japan Information Electronics Stock Fund under Nomura Asset Management. Fukuda believes that the current landscape of the technology stock market is completely different from the period when the internet bubble burst 25 years ago. At that time, as an analyst mainly researching European and American technology stocks, he observed that companies investing in telecommunications network infrastructure were mostly startups, with no profits or cash flow. This made financing extremely difficult and ultimately led to a market collapse. Today, investments are driven primarily by powerful giants like Meta, Google, and Amazon, creating a more sustainable infrastructure investment model.