New Delhi, June 20 -- Cheap valuations on some of the AI sector's biggest names may look like a bargain, but according to one markets research firm, cited by Business Insider, they could be a warning that investors are losing faith in the data centre boom that has powered the artificial intelligence rally.

Tom Essaye, founder of Sevens Report Research, wrote in a note on Wednesday, reported by Business Insider, that unusually low valuations across leading AI stocks may reflect growing scepticism rather than opportunity.

Investors typically award growth companies higher valuations because of their expected future earnings.

Essaye's point, as relayed by Business Insider, is the inverse: when AI stocks trade cheaply despite strong growth ...