The three tests for a bubble stock are:
A two-year price return above 100%.
A two-year excess return over the S&P 500 of greater than 100%
A five-year return of 50%.
Of the 29 companies in the S&P that match this definition of a bubble, 18 are in the AI industry, point out analysts from Ned Davis Research.
Semiconductor companies which match the definition are Nvidia, Lam Research, AMD , Micron, Broadcom, Monolithic Power Systems and KLA Corp.
