3 Overvalued Large-Cap Tech Stocks Wall Street Thinks Have Run Too Far, Too Fast
The increasing demand for tech products and services has lately been driving the prices of many large-cap tech stocks to fresh highs. However, rising production costs are expected to mar these companies’ revenue and earnings growth in the coming quarters. Examples are Taiwan Semiconductor (TSM), Palantir (PLTR), and Fortinet (NASDAQ:FTNT). Their shares have rallied significantly to hit price levels that look unsustainable given the companies’ moderate growth prospects. So, Wall Street analysts expect these stocks to lose some value in the near term. Let’s take a closer look at these names. As businesses’ rapid digitalization creates robust demand for tech products and solutions, the shares of many large-cap tech companies are soaring to new price highs. Continued demand for improved networking, data storage, and IoT devices in the coming 5G era, along with the adoption of hybrid work structures, have been driving the performance of major tech companies lately.