TECH - As Nvidia And Other Tech Stocks Soar Expert Downgrades Sector Amid Overvaluation Concerns | Benzinga
The tech sector, a major driver of the stock market’s recent gains, has been downgraded by Truist’s Chief Strategist and CIO, Keith Lerner. This move comes amid concerns of overvaluation and a subsequent recommendation to invest in alternative sectors.
What Happened: Lerner recently downgraded the tech sector from overweight to neutral, citing concerns over its current valuation. This decision comes on the heels of the sector’s 11% outperformance of the market last month, reported Business Insider on Monday.
Lerner, however, remains optimistic about the long-term prospects of the tech sector, particularly in the field of AI.
“There will likely be a better opportunity to deploy capital in a meaningful way, and we will be looking for a better entry point to upgrade the sector in the future,” Lerner wrote in the note.
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