AI spending is still expanding, and some chip companies tied to the buildout are producing unusually strong profits while their stocks trade at modest earnings multiples. On the surface, that looks reassuring.

But the companies in this buildout don’t all carry the same kind of risk. Similar-looking valuations can sit on top of very different business conditions. That gap is where the market gets harder to read.

Michael Khouw, a YieldMax Strategist and former floor trader, has lived through several major market cycles and remains net long with significant technology exposure. He joins us to explain why confidence in AI itself is not the same as confidence in every valuation being built around it.

Views expressed in this video are the opinions of the host and the guest and do not necessarily reflect the views of The Epoch Times.