Closing Bell Closing Bell: Bubble Trouble? 5/13/26
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May 13, 2026 Sherry Paul, a Morgan Stanley private wealth advisor who guides ultra-high-net-worth clients, outlines portfolio bets beyond tech. She highlights industrials, financials and healthcare as areas to diversify into. Short, punchy takes on AI-driven productivity, defense-linked industrial demand and why tech themes still matter.
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AI Compute Boom Is A Secular Multiyear Trend
- Ankur Crawford argues the AI-driven compute boom is secular not cyclical, with CapEx rising through at least 2028 as hyperscalers chase unsatiated compute demand.
- She cites rising CapEx, short compute capacity, and supply-chain adjustments as reasons earnings will grow for years, not just a short cycle.
NVIDIA China Sales Blocked By China, Not US Licenses
- Christina Partsinevelos reports NVIDIA's export licenses exist but Chinese orders stalled on China's side, meaning NVIDIA's China access is constrained by Chinese approvals, not U.S. export licenses.
- She points to purchase orders and approvals that later fell apart, with unclear reasons from Chinese customers and potential use as bargaining leverage.
Tech Earnings Growth Keeps Valuations In Check
- Panelists highlight that large-cap tech earnings are accelerating dramatically, driving S&P earnings growth and keeping valuations reasonable versus growth.
- They note tech's PEGs remain low (around 1–1.5) while S&P earnings are up ~20% and tech earnings ~50% this quarter.