AI bubble in 'later innings' using Nvidia, large cap tech as proxy: Morgan Stanley
BING-JHEN HONG
The bubble is artificial intelligence-related stocks may be in the "later innings," investment firm Morgan Stanley said on Monday.
A team of strategists, led by Edward Stanley, said that if the firm uses Nvidia (NASDAQ:NVDA) or large cap tech stocks in the U.S. as a proxy, then "tactically" the rally is in the later innings. 
"The performance of both single stocks or the narrow grouping have returned [more than 200% year-to-date]," the strategists wrote. "Consequently, with typical 3-year returns into bubble peaks of [roughly] 150%, one could argue that this rally surpasses most others." 
Nvidia (NVDA), which competes with AMD (AMD), Intel (INTC) and other chipmakers, has seen its share price rise more than 200% year-to-date and the company has surpassed a $1T in market cap.
The strategists added that corrections during this rally have been more "muted," as have the standard deviation of returns. 
"We would be hard pushed, in fact, to compare it to any rally we have seen across all 70 bubbles we have looked at given the stability of its run up," they explained.
Nvidia (NVDA) shares were fractionally higher on Monday.
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