Investors Losing Confidence in Tech Stock Growth
14 posts across 6 communities in the last 60 days; 57% from r/investing.
“Everywhere i go there is talk of a AI bubble. Or a tech bubble. Or over inflated tech stocks. With the recent ibm issue and other tech related troubles brewing. Should people take a step back and do some anti tech investing? Just to get a core of reliability in case tech goes…”
“Beginner investor here (26M). With the majority of funds like voo and vti being invested heavily in tech stocks, what are your guys thoughts on the "AI bubble" and the risks to a portfolio invested heavily in such funds. Any way to mitigate these risks while still sticking to…”
“I’ve seen a lot of bubble finally popping takes this weekend and I don’t think they’re reading the week right, so I want to lay out what I think actually happened. The chip index fell 11.4% last week, its worst since April 2025. But look at where the damage started, September…”
Several posts express concern about a potential tech bubble and the possibility of a market correction, leading investors to question the long-term viability of high-growth technology stocks. Some are considering diversifying into more stable investments or 'safe havens' to mitigate risk.
SOURCES (34)
“Beginner investor here (26M). With the majority of funds like voo and vti being invested heavily in tech stocks, what are your guys thoughts on the "AI bubble" and the risks to a portfolio invested heavily in such funds. Any way to mitigate these risks…”
“I’ve seen a lot of bubble finally popping takes this weekend and I don’t think they’re reading the week right, so I want to lay out what I think actually happened. The chip index fell 11.4% last week, its worst since April 2025. But look at where the damage started, September CPI came in at 3.7% against 3.6% expected, the Fed already hiked in September, and the 10 year touched 5.36% the week before, a 24 year high. In that environment the first things to break were the companies funding AI infra”
“I'm still very new to this, so I don't know anything. If what we're seeing actually is a bubble, it has to pop. And I know that if you're lucky enough to not be affected by it, a crash in the market is the perfect time to invest since the price is so low. Of course, when it comes to bubbles, it's risky since you never know if a company will ever recover. The dot com crash claimed the lives of hundreds of new tech companies that had been riding that artificial wave. But many o”
“If you think there's an AI bubble, then you need to identify the unaffected sectors. Frankly, beyond about 6-7 tech stocks, I'm not convinced there's any AI bubble. [re: What stocks would you add to an AI-bubble-resistant portfolio?]”
“It's still early and valuations are high. I'm always hearing something month to month about bubbles and the uncertainty. But is there really a case for any of this going away? No reason to fear putting anything into long term index funds. When it dipped I bought a share of SOXX, and I don't touch my brokerage hardly. I'm on a spiral of YT videos of everyone admitting they're not sure what's going to happen. I think people just don't like the uncertainty (extremely und”
“Most Ai stocks will collapse and companies will go bankrupt: CRWV, IREN, NBIS, AI Technology will flourish and be universally adopted spurred by efficiency gains in company operations, overaall systems overhaul (these can be done without AI, but AI spending helps actually getting them built). Companies that will most likely not collapse. Some can grow: 1. Current moats, ads, ability to use AI: GOOGL, META. 2. Hardware: NVDA, AAPL, MU, GOOGL. 3. Power: Not sure why these are not ripping. This is”
“I am 56 and have a pretty significant portfolio. $1M in financial assets mostly in retirement accounts. About 75% in S&P 500 index which has served me well. But I'm starting to get concerned about being so heavily invested in in tech. Considering moving a third of that or more to something not so heavily weighted in the Mag 7 like SCHD. What do you think? submitted by /u/kujobie [link] [comments]”
“People that hold tech heavy indices over the long run. Maybe not so much if you're entering right now but it might not matter much for a twenty year horizon. The gains always go most reliably to owners of the associated assets, and somewhat less to skilled labor while the skill in question is in short supply.”
“Do Trillion dollar valuation companies have the power to crash the stock markets (either pre IPO, or after) if, they collapse - or, is it still small fry compared? Another way of putting this....are we in an AI bubble? The OpenAI and Anthropic IPO's, which we'll see in the next 6 months are going to make more millionaires, SpaceX will encourage a lot of retail investors to want to make a quick 10, 20, 30% - i'm interested in the dangers here.... Or...are times just different? s”
“The useful distinction may be between a technology failing and expectations simply being priced too aggressively. A sector can keep growing while valuations still reprice sharply if future assumptions change.”
“Some AI companies are already producing Cashflow positive. I doubt of another dotcom bubble burst”
“No. AI has a use. There was a .com bubble but after it poped we still had google and amazon because they are useful.”
“It could as easily turn out to be like the dot-com bubble. A few businesses like Amazon made it big, the rest likely became penny stocks at best.”
“no, NFTs were pictures of monkeys that could be screenshot and shared and saved anyway. AI is a use case scenario which may be over valued but which has changed the world”
“With Anthropic, Sam Altman, and Elon Musk all agreeing that development should slow down how do you think this will affect AI related stocks? The WSJ included a sub article today “America’s Great AI Freakout Has Begun” with a quick summary “Panic about the existential threat of AI spread across mainstream America following a warning from a departing Anthropic researcher.” https://www.wsj.com/tech/ai/americas-great-ai-freakout-has-begun-c04cf644?st=duRPab&reflink=article\_copyURL\_share”
“We talk constantly about AI replacing coding, customer support, research, art, etc. But what happens if it also destroys one of the basic mechanics of investing? Today, you can research a company, decide it's worth $100, notice it's trading at $80, buy it, and wait for the market to catch up. The edge is figuring it out first. Now imagine every serious investor has an AI agent constantly analyzing earnings, filings, supply chains, satellite data, job postings, customer activity, etc. New”
“Seems tech has had its ups and downturns and always comes back, however this one people seem to think is permanent due to AI. How does this compare to previous downturns? Do you think it will be permanent or is it overblown? submitted by /u/alex123711 [link] [comments]”
“Right now it feels like everyone is buying the same things: tech stocks, semiconductors, “AI stocks,” Nasdaq 100, QQQ. And at the same time, the Nasdaq 100 is trading around 30x earnings, while the S&P 500 CAPE ratio is getting close to 40. Both are historically expensive. You basically have to go back to the peak of the dot-com bubble to find clearly more extreme valuations. That doesn’t mean tech stocks have to crash tomorrow. They could keep going up for quite a while. But I think people”
“Right now pretty much everyone is buying tech stocks, semiconductor stocks, “AI stocks” and Nasdaq 100 / QQQ. At the same time Nasdaq 100 PE is sitting around 30 and the S&P 500 CAPE ratio is close to 40. Both are at historical highs, only beaten by the peak of the internet bubble. These levels usually point to much lower returns for tech and the Nasdaq 100 over the next 10 years. A lot lower than most people currently expect. submitted by /u/PanicBubbly9353 [link] [comment”
“A lot of people loaded up on tech stocks and QQQ still don’t seem to grasp how extreme the concentration in the US market has gotten. Reuters says Information Technology now makes up 39.4% of the S&P 500’s market cap. That’s higher than the peak during the 2000 bubble (around 35%). But that number is actually understated. Amazon sits in Consumer Discretionary. Alphabet and Meta are in Communication Services. None of them count toward the official “IT” weighting, even though they’re right at”
“The following is a warning to all investors in the AI compute space. Over the past year nearly all equities linked to the AI hardware space have experienced 10x runs or more. While there is real promise in the AI trade, it is my belief that compute equities will be responsible for the ruin of the largest class of retail investors since the dot com crash. This is why. Leveraged ETFs account for less than 1% of AUM out of all ETFs yet they account for 16% of trading volume. At the same time 0dte o”
“Like everyone else I’m watching the AI/Datacenter doomerism. Like many but not all, I’ve done some of my own research - I have concerns. Unlike most, I’ve spent a lifetime in a casual hobby reading about the history of technology and invention. That education makes my concern more concerning. So I have two questions. for the sub. How true is it that the various AI company risks seems to be widely present in all sorts of mutual funds, etf’s, and bond funds (via the funding structure for Datacente”
“I’m not 100% Boglehead, but I’m pretty close. I’m hoping to FIRE within the next few years, depending on how a few things play out. What I keep getting stuck on is AI. Not whether AI stocks will outperform, but the broader ripple effects on jobs, productivity, inflation or deflation, interest rates, geopolitics, and markets in general. I realize the standard Boglehead response is probably: nobody knows, stay diversified, and don’t try to predict the future. Fair enough. But for someone close to”
“I want to know what dividend stocks I can just put my money in and chill like schd and others what are you guys thinking of right now I would love to be away from this ai hype and also safe from ai downturns. I have investments into SCHD,WM,PEP,PG,TMUS, and HD what do yall think of the dividend portfolio and what are you guys looking out for? submitted by /u/Competitive_Grass_11 [link] [comments]”
“AI-heavy tech got crushed recently, but the market’s not collapsing — it’s rotating. Energy, healthcare, consumer staples and utilities are soaking up all that cash fleeing overheated AI names. Diversification > piling into the Magnificent Seven right now. More>> Who’s already positioned in these underrated sectors? submitted by /u/AbbreviationsIcy3807 [link] [comments]”
“I'm concerned about predictions of an upcoming bursting of the AI bubble and I want to protect myself. I'm current dumping everything into a Fidelity Target Date 2035 fund and I'm thinking about shifting to this mix which protects against AI investment, thoughts? Here's the mix: 35% into FLCOX (Fidelity Large Cap Value Index Fund) 15% into FSSNX (Fidelity Small Cap Index Fund) 20% into FSPSX (Fidelity International Index Fund) 30% into FXNAX (Fidelity U.S. Bond Index Fund)”
“Using Alphabet as an example their stock is down 7% after a stellar earnings report. They have to invest heavily in AI to continue strong growth in the future or fall behind. It’s frustrating when Wall Street penalizes companies for something that will inevitably make the company more competitive and generate greater revenue. These companies know what they have to do to maintain future growth and still get penalized for it. Help me make sense of it please. submitted by /u/ProvForge26”
“Everywhere i go there is talk of a AI bubble. Or a tech bubble. Or over inflated tech stocks. With the recent ibm issue and other tech related troubles brewing. Should people take a step back and do some anti tech investing? Just to get a core of reliability in case tech goes boom? submitted by /u/RequiemQuilty [link] [comments]”