AI Bubble: Growth vs. Value 2026

For 15 years, one investment strategy has crushed the competition, delivering nearly 400% cumulative returns. But financial history suggests this dominance is about to end. Are you holding the wrong stocks for 2026?

We are diving into the epic battle between Growth Stocks and Value Stocks, a hot topic currently trending in Taiwan's financial news. Recent data shows Growth ETFs soared over 20% in 2025, leaving Value far behind at 12.7%. This incredible, decade-long run is fueled primarily by massive technological innovation, especially Artificial Intelligence.

Companies driving cloud computing and robotics—many deeply connected to the global supply chain anchored by Taiwan—are the core of this growth. Over 60% of Growth ETF portfolios are concentrated in tech, all riding the AI wave. The expectation is that this innovation will continue, securing Growth's lead into 2026.

However, a counter-narrative warns of an 'AI bubble.' Critics argue that valuations are dangerously high, and companies are spending too much on AI infrastructure. If this bubble bursts, Value Stocks—stable companies trading below their intrinsic worth—are poised for a massive comeback. Historically, after periods of extreme growth, like the dot-com era, Value stocks dominated the market for years.

Nobel laureate research even suggests that over long 15-year periods, Value has historically outperformed Growth 93% of the time. This debate is crucial for the global economy, including Taiwan, which relies heavily on the tech sector's stability. Understanding this balance between high-risk innovation and stable value is key to navigating the future.

See you in the next update. Thank you.

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* This blog content actively utilized AI to automate 24-hour world news and repetitive content creation to gain empathy and inspiration through Parts 1 and 2 in order to write Part 3 empathy ideas, and AI can make mistakes.