overdone

“We believe the recent pullback in shares is overdone,” wrote the analyst team led by Scott Devitt.

But investors have grown increasingly fearful that the vast sums pumped into the sector may have been overdone and could take some time to see profits realised, leading to warnings of a possible market correction.

“We continue to believe that is overdone, and the Fed is concerned about the labor market amid slowing inflation,” the ETF firm’s head of investment strategy says.

A blockbuster earnings report from chip bellwether Nvidia on Wednesday seemed to settle nerves that vast investments in the artificial intelligence sector may have been overdone.

“We think fears of a collapse in the AI narrative are overdone and expect the economic expansion to continue for yet another year,” Rajadhyaksha adds.