Hey, Ross here:
With the SpaceX IPO…
The booming semiconductor trade…
And just the sheer dominance of tech and AI in our stock market today…
Lots of people are worried about whether we’re seeing something akin to the tailend of the Dot-Com bubble.
Today’s issue dives deeper into that.
Chart of the Day
First off, let’s acknowledge just how dominant the tech sector is in our stock market today.
As this chart shows, tech and tech-related stocks now account for nearly two-thirds of total market cap…
By far the highest in history – surpassing even the Dot-Com bubble.
However, here’s something to keep in mind.
Tech is not the narrow, speculative corner of the market it was back in 2000.
Today, tech is embedded into almost every part of the economy.
Banks run on software.
Retailers run on logistics, data, and cloud infrastructure.
Automakers are increasingly software and battery platforms.
Healthcare, defense, energy, manufacturing – all of them are becoming more dependent on chips, automation, AI, and data.
So yes, tech is a massive share of the market.
But that may simply reflect where the economy’s growth, productivity, and cash flow are now coming from.
And take a look at this chart showing how today’s tech rally compares with the Dot-Com bubble.
Back then, tech valuations went absolutely vertical.
Forward P/E multiples expanded around 300% leading into the peak.
Today?
Forward P/E is actually down compared to where it was five years ago.
That’s a massive difference.
Yes, tech prices have gone up.
But they have not gone up anything like the Dot-Com era.
And more importantly, today’s move has not been driven by investors blindly paying more and more for the same dollar of earnings.
In fact, as you can see from the chart…
Forward P/E multiples have actually been stagnating or even falling in recent months…
Meaning it’s earnings that is driving the price growth.
That’s why I’m not really worried about tech “dominance”.
But there’s one critical caveat to understand, which I explain below.
Insight of the Day
Tech is no longer just one trade.
Tech is too big now to treat as one single trade.
Semis can rip while software lags.
AI infrastructure can break out while consumer internet names stall.
One pocket of tech can correct while another keeps leading.
So when someone says “tech is topping,” my question is:
Which part of tech?
Because the real opportunity is not in blindly buying or selling “tech.”
It’s in finding the specific pockets where money is still flowing, earnings are still growing, and price action is still strong.
And that includes the smaller, overlooked “underground” tech stocks most traders aren’t watching yet.
Tomorrow morning, I’ll be sharing about an incredibly powerful – yet highly controversial – method for targeting these underground trades…
So keep an eye out for that.
In the meantime…
Have you heard of the CEO betting his fortune on one stock?
Customer Story of the Day
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Their team didn’t just give me a quick answer—they walked me through every step with patience and clarity. They actually stayed on the line until I was 100% satisfied, and they followed up afterward to make sure everything was working perfectly.
I’ve dealt with countless brokerages over the years, and Traders Agency customer support is hands down the BEST I’ve ever experienced. They’re not just supportive—they’re TRULY ON YOUR TEAM.
If you’re looking for a trading platform where you feel valued and supported, this is it. Traders Agency customer support gets my highest recommendation without any reservation!
10/10 – Would absolutely recommend!”
Ross Givens
Editor, Stock Surge Daily
