Recent optimism around AI revenues led to a significant expansion in valuation multiples among mega cap tech companies. However, a price pullback has brought some of these valuations back to historical norms. To manage risk, investors should remain valuation-sensitive when investing in AI companies, avoiding entry at peak prices during periods of excessive hype and optimism.
Historical performance is not an indication of future results and any investments may go down in value.
Article originally published by WisdomTree. FE fundinfo is not responsible for its content or accuracy and may not share the author’s views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.
Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.
