"The economic pain that will be brought by these tariffs are hard to describe and can essentially take the US tech industry back a decade," Dan Ives said.
Hedge funds have shed technology stocks at the fastest pace in six months, according to data from Goldman Sachs.
Earnings pessimism for The Magnificent Seven stocks look like it's approaching a bottom, and the group's revival could boost US stocks broadly.
"Just because asset prices go up doesn't mean it's a bubble," BMO's Brian Belski told Business Insider.
"In a recessionary environment, we recommend infrastructure and back office application platform vendors, with more resilient spend," analysts at BofA said.
Eight tech titans have suffered a $266 billion wealth wipeout this year, with Elon Musk's net worth plunging by $132 billion.
The 4% drop in the Nasdaq on Monday marked its worst day in years as Trump refused to rule out recession.
The S&P 500 and the Nasdaq tumbled after Trump's tariffs went into effect. The dollar also bucked expectations, dropping as trade-war fears climbed.
The AI trade isn't about Nvidia anymore, according to Goldman Sachs. Instead, invest in companies with AI-enabled revenues.
The top tech stocks have soared comprising a larger proportion of the total value of the S&P 500, but some see risks building for the mega-cap cohort.
Tech
2025-02-08T09:49:02Z
Nobel-winning economist Paul Krugman said today's tech stars are already dominant and more involved in politics, paving the way for a softer landing.
Investors should be on high alert for more AI-stock weakness after DeepSeek disrupted markets and sent shares tumbling.
The DeepSeek sell-off sent tech stocks tumbling across the board, but Bank of America sees opportunity in these non-AI hardware stocks.
"It could also imply that equities could have more downside," an analyst said, "given opportunists don't appear to be in any rush to buy at cheaper levels."
A major tech stock sell-off ensued Monday as the debut of DeepSeek rattled investors. Nvidia, Alphabet, and Microsoft were among the biggest losers.
Indexes closed lower on Thursday, with the tech-heavy Nasdaq falling almost 1%, led by a slide in mega-cap tech stocks like Apple and Nvidia.
The bubble has a few more years to inflate as AI continues to impact businesses, but after that investors should beware a steep drop in the top tech stocks.
Investor expectations for the stock market and AI going into 2025 are creating bubble-like conditions, says Bob Elliott.
The stock market is facing three challenges that could make a sharp decline more likely in 2025, according to Goldman Sachs.
Michael Burry refrained from posting on X, bet big on a trio of Chinese tech giants, and saw one stock wager pay off last year.