The percentage of individuals who think technology stocks are overvalued has increased significantly since last month: in September, almost half of those surveyed disagreed, according to Bloomberg. Sixty percent of those surveyed thought that worldwide stocks are overpriced.
The US stock market has recently achieved multiple new highs due to investor excitement surrounding the artificial intelligence sector and related predictions for productivity growth, according to Bloomberg. The Nasdaq 100, predominantly comprised of technology firms, has climbed 18% since the beginning of 2025, elevating its forward price-to-earnings (P/E) ratio to almost 28x, in contrast to a decade average of 23x, as reported by the agency. This has caused some market players to wonder if valuations are exceeding the real profitability of tech firms.
Goldman Sachs Group strategists, however, think it’s premature to panic over a bubble in the tech industry, Bloomberg writes. The survey indicated that fund managers are still optimistic: it revealed that the percentage of investments in US equities has reached its highest level in eight months. Managers perceive the AI bubble as the foremost remaining risk, trailed by worries over increasing inflation, the potential erosion of the US Federal Reserve's autonomy, and the depreciation of the dollar.
source: bloomberg.com
The US stock market has recently achieved multiple new highs due to investor excitement surrounding the artificial intelligence sector and related predictions for productivity growth, according to Bloomberg. The Nasdaq 100, predominantly comprised of technology firms, has climbed 18% since the beginning of 2025, elevating its forward price-to-earnings (P/E) ratio to almost 28x, in contrast to a decade average of 23x, as reported by the agency. This has caused some market players to wonder if valuations are exceeding the real profitability of tech firms.
Goldman Sachs Group strategists, however, think it’s premature to panic over a bubble in the tech industry, Bloomberg writes. The survey indicated that fund managers are still optimistic: it revealed that the percentage of investments in US equities has reached its highest level in eight months. Managers perceive the AI bubble as the foremost remaining risk, trailed by worries over increasing inflation, the potential erosion of the US Federal Reserve's autonomy, and the depreciation of the dollar.
source: bloomberg.com