economy
Citi cuts tech stock weighting: 'Difficult to see how everyone in AI/Tech path wins'
The tech trade is becoming rocky, and Citi thinks it's time for investors to trim positions in the sector.
TL;DR
- Citi downgraded its tech weighting recommendation to market weight from overweight.
- The tech trade is facing rocky conditions, with some investors considering similar moves.
- Chip stocks, including Nvidia and Micron, experienced declines.
- OpenAI is reportedly considering delaying its initial public offering until next year.
- There are concerns about the return on investment for AI-related capital expenditures.
- Despite caution on tech, Citi remains bullish on equities overall with a high year-end S&P 500 target.
- A rotation away from tech is expected, with weaker oil prices potentially leading to less inflation concern.