SocGen warns of potential bubble burst in US tech sector as tech accounts for 35% of S&P 500 market cap

From Investing.com: 2024-07-20 05:37:13

Societe Generale warns of a possible bubble burst in the US technology sector, with tech accounting for 35% of S&P 500 market cap. Analysts cite historical patterns of bubbles and crashes, urging investors to be vigilant for a downturn.

Despite concerns, US Tech has surged over 100% since the launch of OpenAI ChatGPT in 2022. SocGen’s global strategy team sees parallels to the 1990s Nasdaq bubble but remains cautious about the AI excitement leading to a potential burst.

While global strategists raise alarm, US equity colleagues anticipate a calm rotation out of Tech. SocGen recalls the 90s Nasdaq bubble, cautioning that excessive valuations fueled by AI excitement may not justify sector earnings, reminiscent of past excess capacity investments.



Read more at Investing.com: SocGen warns of potential US tech sector bubble burst By Investing.com