Serenity said on X that traditional value investing appears to have entered a dormant phase. According to Odaily, the investor said companies once sought for 10 to 12 times earnings, slow growth, and cash flow-backed buybacks and dividends are now being replaced by firms trading at just 1.8 times earnings with year-on-year revenue growth of 605.24%, leaving investors focused mainly on how long that growth can last.

Serenity also pointed to Sumitomo in Japan, saying it trades at 16.2 times earnings and has long-term agreements with hyperscale cloud service providers across AI-related businesses ranging from fiber optics to lasers. Serenity said AI has created larger valuation mismatches in the medium term, pushing value investing toward high-growth deep value companies.