Doug Clinton, CEO of Intelligent Alpha and Managing Partner at Deepwater Asset Management, stated that the artificial intelligence (AI) bull market will "continue for two to four years." In an interview, Clinton addressed concerns about whether there is a bubble in the AI market, pointing out that the more important question is whether the current bull market has ended—he firmly believes it has not.

AI chip giant NVIDIA will report earnings after market close on Wednesday. Clinton's model predicts that NVIDIA's revenue and earnings per share will both exceed market expectations. Clinton commented: "As people become slightly more cautious about artificial intelligence, we might be able to breathe a sigh of relief."

Although NVIDIA's forward price-to-earnings ratio is "slightly high," Clinton believes its valuation remains reasonable compared to other tech giants. He noted that the six major tech giants, excluding Tesla, have a forward P/E ratio of approximately 28.5 times, while NVIDIA's forward P/E ratio is in the 30s, but its "expansion magnitude is not as large as other companies."

Clinton warned that despite the long-term upward trend in AI development, the market will experience periods that are "above average and then below average." Clinton pointed out that the current market "may be slightly overheated," although it has "cooled down in the past few weeks," which has made him "pause slightly in some truly important AI areas."

Beyond large-cap stocks, Clinton also highlighted two investment opportunities: Datadog is an AI-related investment target in the software industry, noting that "the software industry has performed very poorly this year." Non-AI stock First Solar is expected to benefit from the expansion of U.S. manufacturing.