Stock InvestingAIPersonal Finance

Will the AI Bubble Burst? We Break Down if Tech Is Still Worth Investing In

The Straits Times
The Straits Times•Jun 1, 2026

Why It Matters

The discussion frames AI as a long-term growth driver but warns of valuation risk, so investors must balance participation in the AI theme with diversification and fundamental analysis to avoid concentrated losses if sentiment shifts. Choosing funds or ETFs can offer exposure while mitigating the higher research and timing risks of picking individual tech names.

Summary

Speakers say AI is a generational technology and tech exposure remains essential, but how investors access it varies—some use single stocks and ETFs, others prefer AI-focused funds or broad S&P 500 exposure. The guests argue that talk of an "AI bubble" confuses rising prices with unsupportable valuations: a bubble exists only if prices outpace fundamentals like earnings and cash flow. They note US tech firms have delivered strong earnings growth in recent years, which can justify higher prices, and caution that bubbles are visible mostly in hindsight. Practical advice: retail investors who lack stock-picking expertise should favor diversified ETFs or index funds and use systematic investing to manage volatility.

Original Description

Tech still holds long-term promise but choose companies carefully based on their fundamentals.
Synopsis: Every first and third Monday of the month, get a head start in your personal finance, career and life with The Straits Times.
Talk of an AI bubble has been brewing for some time, with many asking when it will burst. 
But young investors still want to get in on the tech wave and buy into a sector that has great growth potential.
In this episode, ST business correspondent Sue-Ann Tan looks at which tech stocks show promise in a mature AI era.
Her guests are DBS Bank head of equity and fixed income Subhra Chatterjee and StashAway head of investment advisory Mark Yeo.
Highlights (click/tap above):
3:00 Tech is still an integral investment theme  
6:00 What is the AI bubble
12:00 Should you still buy the MAG7
17:00 How to fit tech into your portfolio
21:00 SGX or Nasdaq or some other market entirely
31:00 What is dollar-cost averaging?
34:00 Different ways to diversify your portfolio
Read Sue-Ann Tan's articles: https://str.sg/mvSa
Follow Sue-Ann Tan on LinkedIn: https://str.sg/A86X
Host: Sue-Ann Tan (suetan@sph.com.sg)
Produced & edited by: Amirul Karim
Executive producers: Elizabeth Law and Joanna Seow
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