Hou Wey Fook, Chief Investment Officer at DBS Group, stated that Nvidia's (NVDA.US) price-to-earnings ratio, combined with an expected earnings growth rate of 70% next year, indicates that artificial intelligence (AI)-driven technology stocks are nowhere near bubble territory.

Data shows that Nvidia's current share price trades at approximately 17 times its expected earnings over the next 12 months. Hou compared this valuation to Cisco's (CSCO.US) 100x valuation before the dot-com bubble burst.

"If the benchmark company of the AI trade is valued at only a dozen times earnings, how can you call it a bubble?" he said in an interview, adding that semiconductors and AI still have "tailwinds" in this rally.

However, Hou still advocates a "barbell" strategy to "control the overall volatility of the portfolio": combining growth-oriented tech stocks with investment-grade fixed income products to achieve stable returns, while using hedge funds and gold as intermediate risk diversification tools.

In terms of market performance, Nvidia's stock price hit a record intraday high last Friday, coming within striking distance of becoming the first listed company globally to surpass a $6 trillion market capitalization. According to media reports, Nvidia and SoftBank have each completed the final $10 billion investment in OpenAI's previous funding round, fulfilling their respective $30 billion investment commitments.

Additionally, U.S. September nonfarm payroll data came in below expectations, leading the market to reduce bets on a Federal Reserve rate hike in October, which drove tech stocks broadly higher and further boosted Nvidia's share price. Nvidia has risen about 25% year-to-date and currently has a market capitalization of approximately $5.6 trillion.