Technology and Artificial Intelligence (AI) Stocks Are Doing Something Not Seen in Over 25 Years. It's an Ominous Warning
If you follow the market, then you likely know that technology and tech-related stocks have dominated the conversation and fueled the strong returns of the past few years, largely due to excitement around artificial intelligence and its ability to change society as we know it.
While it's still early days, investors are betting big. In fact, enthusiasm around tech and AI has gotten so intense that the sector is now doing something not seen in over 25 years. In fact, the last time tech stocks climbed this high, it was right before a major market crash, which presents an ominous warning.
Tech and AI make up a majority of the market, largely due to the "Magnificent Seven" stocks. These megacap tech companies not only generate a tremendous amount of earnings and free cash flow, but they're pouring tens of billions into AI infrastructure and investments. As of Aug. 11, just eight tech companies account for 37% of the S&P 500 (SNPINDEX: ^GSPC)
Source Fool.com
