Goldman Sachs trader Mike Washington explains why he believes AI stocks are not in a bubble, citing strong fundamentals and steady fund flows. AI-related companies have driven 80% of S&P 500 gains in 2025, with Nvidia leading the surge. Goldman expects $520 billion in US stock purchases in 2026, fueled by domestic and foreign investment.

Despite concerns of a bubble in AI stocks, Washington points to real growth in top companies driving market gains. P/E ratios at 27 are lower now than during the dot-com bubble at 52. Household stock purchases expected to rise by 19% in 2026 to $520 billion, with significant foreign investment in US markets due to AI exposure.

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