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Technology sector under pressure: NBIM warns of overheating
"NVIDIA is struggling with losses in the technology sector according to NBIM. Is the market overheated? Views and forecasts in our article. #TechStocks #NBIM #NASDAQ"
Technology sector under pressure: NBIM warns of overheating
The Norwegian Sovereign Wealth Fund (NBIM) recently warned of possible overvaluation in the technology sector, describing current market conditions as “clearly a lot of froth.” NVIDIA, a leading tech giant, also posted losses due to turbulent developments in the sector.
NBIM CEO Nicolai Tangen expressed concern about speculation in the technology sector in an interview with CNBC. He emphasized that the first quarter results will shed light on whether the current phase is indeed overheated. US tech companies such as Tesla, Meta, Microsoft and Alphabet have already released their quarterly results, which showed mixed results.
Despite the turmoil in the sector, the NBIM posted profits of around $110 billion in the first quarter. In particular, equity investments proved profitable, while real estate investments recorded weaker returns. Vice Chairman Trond Grande of Norges Bank Investment Management praised the fund's performance in the technology sector.
Tangen pointed out that although NVIDIA posted losses, the company is still a leader in the chip sector and has impressive technologies. The NBIM does not plan to withdraw from investments in semiconductor companies such as NVIDIA, Tangen emphasized. Despite the current challenges, the technology sector remains an important part of the Norwegian sovereign wealth fund's portfolio.