{"id":78729,"date":"2026-02-06T15:41:47","date_gmt":"2026-02-06T18:41:47","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/890060272"},"modified":"2026-02-06T15:41:47","modified_gmt":"2026-02-06T18:41:47","slug":"tech-wreck-the-investors-edge","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/06\/tech-wreck-the-investors-edge\/","title":{"rendered":"Tech Wreck | The Investors Edge"},"content":{"rendered":"
<\/div>\n

By John Stewart<\/em>
Chief Investment Officer at Farmers Trust Co.<\/a><\/em><\/p>\n

Week in Review: Tech Wreck<\/h3>\n

I\u2019ve warned many times on Investors Edge about getting too many eggs in one basket, as well as chasing what the crowd is chasing higher.<\/p>\n

Many investors have been WAY overinvested in the tech sector due to its strong performance in recent years, as well as all the hype around AI.<\/p>\n

The past is not always a guarantee of what to expect in the future, however, and stocks have a tendency to pull forward returns \u2013 that is, AI growth was already priced in (and then some) heading into this year.<\/p>\n

All the market needed was a catalyst \u2013 and that catalyst seems to be that AI will make software far less exclusive, putting substantial downward pressure on software companies\u2019 margins \u2013 Microsoft is the most well-known company in this space; its stock is now down more than 25% from its peak last fall.<\/p>\n

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Given that software companies buy a lot of chips and other hardware, it puts the whole tech ecosystem into question.<\/p>\n

The tech-heavy NASDAQ index is down roughly 6% this past week and is now down more than 2% since the beginning of the year.<\/p>\n

There may be more room to the downside in the big over-owned tech names, but of course as markets always do, this correction will eventually run its course and present another buying opportunity.<\/p>\n