We May Not Be in an AI Bubble, Reveals Report

• The top 10 tech companies generate $1 trillion in annual free cash flow. Unlike the dot-com era, this infrastructure buildout is funded entirely by corporate cash, not debt or government spending.
• Today's Nasdaq-100 trades at 28x forward earnings. In 1999, it traded at 89x.
• Equity issuances (IPOs and secondary offerings) in 2025 stand at 56, sharply down from the 511 peak during the 2000 bubble.

Coatue draws parallels to Microsoft’s cloud business, which took six years to become profitable but now generates high returns.

From a -7% return on investment capital (ROIC) in 2014, Azure reached 6% ROIC in 2018 and 33% in 2023. “Cloud didn’t make money immediately, and today, the two most valuable businesses are Amazon and Microsoft,” Laffont stated.