Why it’s time to take tech profits off the table, according to Wells Fargo

Tech has powered the stock market's rally to all-time highs this year. Now, Wells Fargo thinks investors may want to take some chips off the table. Strategist Douglas Beath downgraded the sector to neutral, pointing to sky high valuations. Technology as a group trades at more than 46 times trailing earnings, according to FactSet. That's a steep premium to the S & P 500 index's 29.4 multiple. "Valuations have surged, and we are wary that overly bullish sentiment toward the group and elevated expectations make the sector susceptible to disappointment in the near term," Beath wrote to clients. "Some AI bellwethers reported massive AI-related capex spending in the third quarter, but investor concerns about future payoffs and debt financing have rattled markets." Indeed, stocks tied to the buil