In recent days, a significant shift has occurred in the trading logic of U.S. stocks on Wall Street, with investors adjusting their focus from the existence of an artificial intelligence (AI) bubble to the fundamentals of companies and the valuation of tech stocks. This change has triggered widespread attention in the market.
Traditionally, artificial intelligence was seen as a frenzy in the stock market, with many investors viewing it as the main driving force for future developments. However, the latest trend suggests that the existence of an "AI bubble" is no longer the focal point of market interest. Over the years, investors have flocked to the AI sector, hoping that AI technology would bring enormous returns. But as time has passed, some investors have begun to question this view, believing that AI technology is not the sole driving force of the stock market, and that the actual business performance and profitability of companies are more critical.
As a result, Wall Street has started adjusting its investment ratio in AI companies. Previously, Wall Street invested a significant amount of capital into companies related to artificial intelligence, with AI companies making up more than 30% of some investment portfolios. However, the latest data shows that Wall Street has significantly reduced its investment ratio in AI companies, controlling it to below 10%.
Behind this shift is a reevaluation of market risks and an adjustment of investment strategies. Although investors and analysts have frequently debated whether artificial intelligence contributes to a bubble, they unanimously believe that no matter what, popular tech stocks like Nvidia could still see significant room for valuation expansion. Strategists at Société Générale stated that if applying metrics from the peak of the Internet bubble in 1999, the S&P 500 Index would need to reach at least 6250 points to be considered on par with the "tech stock bubble" level of the irrational exuberance cycle at that time. By comparison, U.S. stocks closed at 5117.09 points last week.
Overall, the shift in the trading logic of Wall Street signifies a decreased focus on the AI bubble and a gradual shift towards the actual business performance and valuation of tech stocks. This change not only reflects a reevaluation of market risks but also provides investors with more rational and sustainable investment options. In the future, as the market continues to evolve, investors need to pay more attention to analyzing the fundamentals of companies and the valuation of tech stocks to secure more stable investment returns.
