HN · HACKER_NEWS// 3h agoNEWS

Tech valuations hit pre-AI boom levels

Apollo Global Management reports S&P 500 tech valuations have compressed from 40x to 20x forward P/E, matching levels seen before the generative AI boom. The "valuation squeeze" indicates a market-wide transition from speculative exuberance to fundamental-based pricing for Big Tech.

// ANALYSIS

The halving of tech multiples suggests the peak AI hype cycle has broken, bringing valuations back to historical norms despite robust earnings.

–Tech forward P/E ratios plummeted from 40x to 20x, matching levels last seen before the late-2022 AI surge
–Top 10 S&P 500 firms including Nvidia and Microsoft remain the primary drivers of 87% of total index EPS growth
–Robust 44% projected EPS growth for Q1 2026 indicates strong underlying business fundamentals despite cooling sentiment
–Higher interest rates and moderating AI adoption rates among enterprises have forced a significant market "de-risking"
–Current 20x levels represent an attractive entry point for high-ROE tech stocks compared to dot-com era extremes

// TAGS

pricingbenchmarkresearchllmapollo-global-management

DISCOVERED

3h ago

2026-04-13

PUBLISHED

5h ago

2026-04-12

RELEVANCE

6/ 10

AUTHOR

akyuu