Svmuu News Goldman Sachs said on Tuesday that tech stocks, including those in the U.S., appear cheap after a prolonged period of underperformance, creating a potential entry opportunity for investors. "(Year-to-date), we have witnessed one of the weakest periods of relative returns for the tech sector in 50 years." Since 2025, multiple factors have led to a relative weakness in the overall tech sector, prompting investors to shift towards value stocks. These factors include the launch of DeepSeek, massive capital expenditures by U.S. hyperscalers, and the disruptive impact of AI on the software industry. These factors provide an opportunity for investors to enter this sector, which still maintains strong growth rates but is currently undervalued. The valuation premium for U.S. hyperscaler stocks has declined and is now almost in line with the rest of the sector. Globally, the price-to-earnings ratio of the IT sector is already lower than that of the consumer discretionary, consumer staples, and industrial sectors. Goldman Sachs noted that despite the low valuations, the earnings performance of the tech sector remains strong. Among the S&P 500 sectors, the IT sector is widely expected to see a 44% year-over-year increase in Q1 earnings per share, accounting for 87% of the index's EPS growth. (Jin10)