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Investing.com - Goldman Sachs analysts have concluded that the U.S. technology sector is not currently in a bubble despite rising concerns about artificial intelligence valuations and spending. This assessment aligns with recent market performance data from InvestingPro, showing the tech sector’s remarkable 196.83% return over the past six months and strong momentum across multiple timeframes.
The assessment comes from a team of Goldman Sachs analysts including Eric Sheridan, Kash Rangan, Peter Oppenheimer, and Ryan Hammond, who acknowledge some reasons for concern but generally agree the tech sector has not yet reached bubble territory.
Sheridan specifically expressed more concern about the significant gap between public market valuations and higher private market valuations in the technology space, according to the report.
This view contrasts with Sequoia’s David Cahn, who argues that only the achievement of artificial general intelligence (AGI) could justify the massive data center buildout forecasted by 2030, though he still sees substantial opportunity in private AI application firms.
Bessemer’s Byron Deeter and Goldman’s Joseph Briggs expressed more optimism about the AI capital expenditure boom, while NYU’s Gary Marcus remains skeptical about AI technology in its current form, leading Goldman to conclude that while tech sector opportunities remain, diversification is advisable. The tech sector currently maintains an Excellent Financial Health Score of 4.84 according to InvestingPro metrics, supporting the balanced outlook from analysts.
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