Tech stocks have surged to new highs at the start of the year, driven by optimism about artificial-intelligence developments and a risk-on market mood. However, analysts project that Big Tech companies’ profit growth will be weaker than expected this quarter—a rare dip in growth since Q1 2023. With shares near record levels and valuations stretched, investors are heading into another pivotal earnings cycle, expecting weaker-than-previous gains as they continue to rally.
Source: https://www.bloomberg.com/news/articles/2025-01-26/tech-s-15-trillion-rally-hinges-on-high-stakes-earnings-stretch