Deepwater Asset Management co-founder Doug Clinton has downplayed concerns about a potential tech bubble, citing the robust performance of NVIDIA Corp (NASDAQ:NVDA) as evidence of a healthy market.

What Happened: Clinton addressed the ongoing tech rally. In an interview with CNBC's Last Call, he pointed to Nvidia, which is currently trading at 33 times earnings and experiencing significant growth, as a sign that the market is not in a bubble.

Clinton stated, "You can't really be a bubble when the greatest stock in the market right now is trading at 33 times earnings and growing like Nvidia is."

When asked if the current rally is healthy, Clinton replied, "It's hard to look at Nvidia's chart and not be fearful emotionally as a human." He stated that the market is seeing a healthy dispersion where markets are voting in favor of companies that are showing relative growth like Meta and Nvidia.

Why It Matters: The debate over whether the current tech rally is a bubble has been ongoing for some time. The surge in tech stocks, particularly those related to artificial intelligence (AI), has led to concerns about a potential bubble. Experts like Ken Rogoff, a Harvard economist, have warned that the stock market rally, driven by the belief that AI will remain unregulated, could lead to a bubble.

The tech rally has been a hot topic in recent times, with experts debating whether it is a sustainable trend or a reminiscence of the dot-com bubble. Clinton's remarks add an interesting dimension to this ongoing discussion.

Image Via Shutterstock