Singapore’s Central Bank Warns of Overheated Tech and AI Valuations
The Monetary Authority of Singapore (MAS) has raised concerns about inflated valuations in technology and artificial intelligence stocks, citing a disconnect between price surges and underlying earnings growth. Its annual Financial Stability Review highlights a Bloomberg index of 45 cloud and semiconductor firms trading at 23x forward earnings—up from 14x in April—while earnings estimates ROSE just 13%.
Recent selloffs erased $500 billion from semiconductor stocks after weak guidance from Palantir and AMD. The central bank cautioned that excessive Optimism around AI profitability could trigger sharp market corrections and private credit defaults. Gold’s rally and dollar volatility further signal underlying investor unease.