AI euphoria to end? Chris Wood warns mega IPOs, bond pressures may trigger tech correction (opens original article in a new tab)

Jefferies strategist Christopher Wood warns that the AI stock rally may face turbulence due to rising bond yields, concentrated investor positions, and upcoming mega IPOs, though he remains cautiously optimistic about the sector's long-term potential.

• Jefferies strategist Christopher Wood warns of potential tech sector correction due to rising bond yields, concentrated investor positioning, and upcoming mega IPOs
• AI-related stocks like Nvidia, TSMC, and Samsung have seen massive gains but face increasing risks from liquidity demands and valuation pressures
• Global bond market stress and competition in AI industry, including China's DeepSeek, add to concerns about sustainability of AI investment returns
• Wood remains cautiously optimistic about AI but advises investors to be more selective as market risks rise