Investor caution on tech bubbles

PARAGRAPH 1 --- Legendary investors Jeremy Grantham and Michael Burry, along with UBS and Goldman Sachs, have recently warned about a potential tech bubble. Grantham, who correctly predicted the Dot-com crash, is now cautioning about an AI-driven bubble. UBS noted that U.S. momentum and tech stocks' excess returns have surpassed Dot-com peak levels. Meanwhile, Goldman Sachs reported the tech sector's weakest performance in 50 years. Bank of America highlighted that only 20 S&P 500 stocks hit record highs in May, a figure matching the Dot-com bubble's peak in 2000.

PARAGRAPH 2 --- These warnings are driving increased volatility in tech stocks, with the U.S. chip stock index plunging 8% on June 23. Tech stocks, particularly those in AI and semiconductors, are most affected. The concern is that hawkish central banks could trigger a repeat of the 1999-2000 correction. Investors are also worried about the market's heavy dependence on a small number of tech giants and potential regulatory risks.

PARAGRAPH 3 --- Next, investors should watch for Micron Technology's earnings on July 26, as it's a key player in the semiconductor sector. Also, keep an eye on the Federal Reserve's interest rate decision on July 27, as it could signal the central bank's stance on tech stocks. Lastly, the upcoming SpaceX IPO, expected later this year, may further fuel the debate on tech bubbles.