Experts at FOREX . com say the Big Tech valuation gap could narrow in H2 2023 .

Experts at FOREX . com took a deep dive into what the stats for the second half of 2023 could show .

Here ’ s what they expect :

The role of AI

AI has emerged as a defining technology in the Big Tech sector . Unlike some previous trends ( Metaverse to NFTs ) that generated hype but had limited applications in the real world , AI is here to stay with practical and tangible solutions . While its trajectory may be a bit of a roller coaster for traders as initial winners pull back and new entrants rise , it presents long term investment opportunities .

FOREX . com AI Market Expert Matt Weller , said : “ Big Tech influence on the financial markets is expected to remain strong in the second half of 2023 . Investors are advised to stay vigilant and adapt to ever changing dynamics . Tech stocks typically outperform in good economic conditions but face challenges during downturns , and this trend is likely to continue .

Tech stocks revival continues heights , reflecting the tech sector ’ s ability to adapt in uncertain times .

FOREX . com analysis , however , shows that progressing into the final quarter , they face the test of maintaining and sustaining growth .

The diversity in valuations among these tech giants will likely narrow , creating opportunities for long term investors and traders .

Tech valuations have tempered during the pullback seen since the start of August , with the price-to-earnings ratio of the Nasdaq 100 declining from over 30 in July and closer toward 25 .

All seven companies have seen their valuation multiples Drop over the past three months , with those with the highest ratios like NVIDIA and Tesla underperforming and experiencing the sharpest declines – and the wide range among the group has narrowed .

Some stocks , such as NVIDIA , have seen their multiples return to more normal levels but some still look expensive when considering the troublesome outlook and their historic averages , like Tesla .

Apple and Meta were both trading at higher than usual valuations heading into this earnings season but are now trading below their five-year average .

All-in-all , the range of valuations in the group has narrowed in recent months but remains wide , suggesting there are still some offering attractive multiples and others that still have room to come down further .

Big tech companies saw a strong revival in the first half of the year , with Apple , Alphabet , Amazon , Meta , Microsoft , NVIDIA and Tesla leading the way .

Their performance propelled both the Nasdaq 100 and the S & P 500 to new

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