Technology stocks have been booming since late July. How much more can they rise next? Ed Yardeni's answer is: This wave of markets is still far from over. Investors' confidence in artificial intelligence trading has been revived, and hopes for reopening have surfaced in the Strait of Hormuz. These factors drove the Nasdaq 100 index to soar 9.3% in four days, breaking out of the best wave since April 2025. Even so, its price-earnings ratio based on expected profit for the next 12 months is only 22.3 times, which is one of the lowest premiums on market valuation since 2017. “For a high-growth industry, that's a relatively low valuation multiple,” Yardeni, president and chief investment strategist at Yardeni Research Inc., said in a phone call. Investors who sold the sector “have discovered that they have actually turned these stocks into promotional products.” Yardeni said the sell-off that propelled the Nasdaq 100 index into a technical correction also eliminated its excessive valuation, thus creating conditions for a rebound. Coupled with strong quarterly reports and continued strong demand for artificial intelligence, the further rise also has a solid foundation.

Technology stocks have been booming since late July. How much more can they rise next? Ed Yardeni's answer is: This wave of markets is still far from over. Investors' confidence in artificial intelligence trading has been revived, and hopes for reopening have surfaced in the Strait of Hormuz. These factors drove the Nasdaq 100 index to soar 9.3% in four days, breaking out of the best wave since April 2025. Even so, its price-earnings ratio based on expected profit for the next 12 months is only 22.3 times, which is one of the lowest premiums on market valuation since 2017. “For a high-growth industry, that's a relatively low valuation multiple,” Yardeni, president and chief investment strategist at Yardeni Research Inc., said in a phone call. Investors who sold the sector “have discovered that they have actually turned these stocks into promotional products.” Yardeni said the sell-off that propelled the Nasdaq 100 index into a technical correction also eliminated its excessive valuation, thus creating conditions for a rebound. Coupled with strong quarterly reports and continued strong demand for artificial intelligence, the further rise also has a solid foundation.