Wall Street Veterans "US Tech Stocks, A Carbon Copy of the Early 1997 Boom"

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Tech stock bulls on Wall Street have released their market diagnosis. The current tech stock market is not a dot-com bubble collapse period. It is similar to 1997, the beginning of the internet boom, they assess. They predict a large-scale upward rally will unfold soon.

Benzinga reported on the 260th episode of the podcast 'The Compound and Friends' on September 22 (local time). Founder Dan Ives and Head of Research Tom Lee appeared to present the strong possibility of a rebound in the New York stock market. Ives stated, "The current tech stock market situation is not 1999-2000, right before the bubble burst," adding, "It is similar to the moment in 1997, which was the beginning of a major uptrend."

The reduced burden of stock prices relative to corporate earnings was also cited as a key reason. Lee explained, "Companies have adapted to geopolitical crises and soaring oil prices, cutting costs." He added, "This year, corporate profits surged by 25%, while the market's increase remained at 10%." He continued, "Investor pessimism is at an extreme," and "there is a very high probability that a massive rally will begin once the Federal Reserve (Fed)'s interest rate hikes conclude."

Ives highlighted the historically largest artificial intelligence (AI) infrastructure capital expenditure (Capex) being executed. He explained that despite major tech companies recording their highest quarterly profitability ever, the market's excessive fear has compressed price-to-earnings ratios. He emphasized that as the U.S. leads the global tech hegemony competition, a corporate value re-evaluation driven by AI facility investment will fully commence.

Wall Street assessed that high market skepticism is actually fueling the rally. Large blue-chip tech stocks that have shown solid performance despite macroeconomic uncertainties are expected to solidify their leadership. There is growing anticipation that the New York stock market will record an unprecedented surge in the fourth quarter.

[Key Article Summary]

-Dan Ives diagnosed that the current tech stock market is not a dot-com bubble collapse period but similar to 1997, the beginning of the internet boom.

-Tom Lee presented the possibility of a large-scale upward rally based on a 25% surge in corporate profits and extreme market pessimism.

-Historically largest AI infrastructure investment and robust corporate earnings are expected to drive further index gains.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*