Schroders Chief Investment Officer said AI and tech firms are not in a bubble, countering market chatter that valuations are inflated. He highlighted that recent earnings beat expectations and that the sector’s fundamentals remain solid.

The comment follows a surge in AI‑driven stocks, some of which rose 30% in the last quarter. Schroders points to strong cash flows and continued demand for data services as evidence of resilience.

Investors watching the tech wave should note that the firm’s stance may influence asset allocation. Acknowledging growth while warning against overvaluation could shift capital toward more sustainable opportunities.

Schroders’ take underscores the importance of balancing optimism with realistic valuation metrics in a rapidly evolving sector.