Despite the significant growth and investor interest in artificial intelligence stocks, Goldman Sachs analysts said Thursday the sector is not in a speculative bubble, unlike previous technology booms such as the late 1990s internet bubble.
Yet the analysts highlight the importance of diversification given the high concentration risk among leading tech companies, often referred to as the “Magnificent Seven.”
The extraordinary performance of tech stocks in recent years has been justified by their earnings, said Goldman stategist Peter Oppenheimer.
Global tech earnings per share have risen by approximately 400% since the global financial crisis, while non-tech sectors achieved a comparatively modest 25% increase, he said.
“The technology sector is not in a bubble and is likely to continue to dominate returns,” Oppenheimer said.
Tech Valuations Remain Reasonable: Goldman Sachs
Goldman Sachs highlights a key difference between the AI-driven rally and previous market bubbles.
The valuations of major tech players are ...
