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Tech Valuations Tested as Investors Reprice AI Risk Premium
Investors reassessed lofty AI stock valuations, rotating toward stable sectors as questions grew over monetization timelines and earnings durability.
Market participants recalibrated expectations for artificial intelligence-driven companies after recent volatility in leading technology names. Elevated valuations, previously supported by aggressive growth forecasts, faced renewed scrutiny. Portfolio managers trimmed exposure to high-multiple stocks while reallocating capital toward sectors with steadier earnings visibility. The adjustment reflects broader reassessment of how quickly AI monetization can translate into sustainable profitability.