Internet bubble 2.0 countdown? Goldman Sachs and Apollo warn: Tech stocks are repeating the 90s "death dance".

Recently, the tech stocks in the US stock market have been rising strongly, driving the S&P 500 index to repeatedly hit new highs. However, Wall Street experts have issued warnings about the high valuation bubble of tech stocks. Tony Pasquariello, head of hedge fund strategies at Goldman Sachs Group, Inc., said that the recent performance of the Nasdaq 100 index reminded him of the late 1990s. Pasquariello noted that the monthly gains for the Nasdaq 100 index recently were as follows: 9% in May, 6.3% in June, 2.4% in July, and 2.1% so far in August. He said, "Please tell me if this chapter in the history books from 1998 is similar to today: at that time, American retail investors were immersed in the potential brought by the new and groundbreaking technology... and the stock market was also approaching historical highs... A series of macroeconomic disturbances triggered a series of interest rate cuts starting in September." "What I'm about to say is that what's happening today is not unprecedented, but it is indeed a very rare situation." Pasquariello said, "As someone who has experienced many ups and downs over the past 26 years, at least we should be grateful that recent days have been so good." Torsten Slk, Chief Economist at Apollo Academy, also warned that the rise in US tech stocks is quite similar to the IT bubble of the late 1990s, and the valuation levels have posed increasingly greater risks for the industry. The tech sector has been a driving force for the stock market for a long time. However, Slk said that despite the significant impact of artificial intelligence on society, it does not mean that the valuations of tech companies in the S&P 500 index are reasonable. Tesla, Inc.'s (TSLA.US) price-to-earnings ratio is close to 200, while NVIDIA Corporation's (NVDA.US) price-to-earnings ratio is around 60. Although artificial intelligence is expected to transform various industries, Slk believes that the rapid development of artificial intelligence could also bring risks to software companies, and even lead to bankruptcy for companies relying on ChatGPT. Slk said, "The key is that it is not yet clear whether the tech stocks in the S&P 500 index are the best choice for investing in the artificial intelligence theme."