Despite rising interest rates, U.S. stocks have shown growth this year. Much of these gains have come from a handful of tech stocks however, raising questions of whether the sector is a bubble
Against the backdrop of rising interest rates and stubborn inflation, U.S. stock markets have shown resilience.
Much of these gains can be attributed to a handful of tech companies, however, many of whom have been quick to capitalise on the excitement of AI.
The burgeoning tech has caused so much excitement, even yoghurt companies are looking to move into the space, as French company Danone recently announced it was exploring the technology to analyse the health properties of its products.
For some however, this excitement is reminiscent of the buzz around the short lived Dot Com bubble from the early 2000s, and investors should be wary.
“[Many tech companies] have been leaning into the AI revolution and it’s caused what I would argue is a little bit of “hopium” that brings us back to the Dot Com days,” said Chris Versace, chief investment officer of Tematica Research.
