Talk of a potential artificial intelligence (AI) bubble shook AI stocks back in November, and this concern reemerges on occasion. This is because AI stocks have soared over the past few years, with many reaching high valuations — and earnings expectations are high too. Investors worry that any bump along the path may deal a significant blow to stock performance, and that’s made many think twice about investing in AI stocks in recent weeks.

But evidence hasn’t supported a bubble scenario. Companies that have reported earnings — from chip manufacturer Taiwan Semiconductor Manufacturing (TSMC) to cloud provider Amazon — have spoken of soaring demand and have delivered significant revenue growth. Forecasts have also highlighted the…