Valuation Summary
The AI Infrastructure Portfolio currently trades at a modest premium to the broader market, reflecting the group’s high earnings visibility, dominant market positions, and exposure to sustained AI infrastructure demand. While valuations are elevated for certain high-growth names, they remain supported by strong fundamentals and accelerating profit cycles across semiconductors, networking, and data center infrastructure.
*Note most of these P/E values are gathered from analysts on Yahoo Finance.
| Ticker | Company | Forward P/E | Relative to Sector | Commentary |
|---|---|---|---|---|
| NVDA | NVIDIA Corp. | 29.9× | Above Avg. | Still trades at a premium, justified by unmatched GPU dominance and continued AI leadership through the Blackwell generation. |
| TSM | Taiwan Semiconductor Mfg. | 22.6× | In Line | Reasonable valuation for its scale and strategic position as the leading foundry for advanced AI chips. |
| ASML | ASML Holding N.V. | 34.0× | Above Avg. | Premium multiple sustained by monopoly status in EUV lithography and long-term order visibility from global fabs. |
| MU | Micron Technology | 12.3× | Below Avg. | One of the few undervalued names; margin expansion and surging HBM demand make it a compelling growth-value hybrid. |
| AVGO | Broadcom Inc. | 36.8× | Above Avg. | Reflects strong custom AI accelerator demand and stable networking revenue; supported by consistent dividend growth. |
| SMCI | Super Micro Computer | 20.4× | Slightly Below | Valuation moderating after significant run-up; fundamentals remain sound given its role in AI server scaling. |
| ANET | Arista Networks | 44.1× | High | Elevated multiple mirrors hyperscaler networking momentum and strong free cash flow generation. |
| VRT | Vertiv Holdings | 31.3× | Above Avg. | Valuation expanded sharply as investors priced in multi-year growth from AI data center power and cooling. |
| ETN | Eaton Corp. | 27.4× | Above Avg. | Slight premium within industrials; justified by its increasing exposure to AI-related grid and power management. |
Portfolio Weighted Forward P/E: ~28×
S&P 500 Forward P/E (Oct 2025): ~20×
Interpretation:
The portfolio trades at roughly a 40% premium to the market, consistent with its elevated earnings growth and strategic concentration in the most profitable layers of AI infrastructure. Risk lies in multiple compression if AI investment slows, but strong earnings acceleration from Micron, TSMC, and Broadcom helps offset valuation pressure. Overall, pricing remains supported by secular demand growth and long-term structural tailwinds in global compute capacity and data center expansion.