The Shiller P/E ratio has reached 42, its highest since the dot-com boom, stoking fears of an AI bust. Alphabet, Amazon, and Nvidia are positioned to survive such a downturn due to strong cash flows and low valuations. Alphabet trades at a P/E of 17 with $242 billion in liquidity, Amazon at 22 with $123 billion in liquidity, and Nvidia at 34 with $80 billion in liquidity and $119 billion in free cash flow over the last 12 months. All three have significant operating cash flows to service debt even if AI spending does not yield returns.
