Technology sector selloff persists amid AI valuation worries, while upgrades and downgrades reflect shifting growth expectations.
The S&P 500 closed lower Friday as technology stocks extended declines due to concerns over elevated AI-related valuations. Micron’s strong earnings report failed to offset broader sector weakness, particularly for Nvidia and peers facing financing constraints.
Analysts upgraded Qualcomm and Super Micro on growth potential and diversification, while Dell was downgraded for limited upside. Nike faced downgrades over execution issues, and Bed Bath & Beyond was upgraded as undervalued during its transformation.
The selloff highlights investor caution amid high valuations and macroeconomic uncertainties, despite selective optimism in specific stocks.