AI stocks haven’t played by the normal valuation rules. Now that rates are higher, they may have to, says UBS
Summary
Artificial intelligence stocks have avoided standard valuation rules in the past, but higher interest rates could force them to conform. According to UBS, past spikes in technology investments and the resulting profits have ultimately proven difficult to sustain for American firms.
Historically, the surges in investment and in the profitability it produced have proven unsustainable for U.S. tech companies, says Michel Lerner.
Source: Read the full story at MarketWatch.com - Top Stories
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