• Fri. May 24th, 2024

Exploring the Art of Balancing Valuation and Growth in Technology Investments: Insights from Industry Experts

BySamantha Nguyen

Mar 25, 2024
Investors’ considerations of price in technology investments

Investing in technology can be expensive at the moment, with some US tech giants experiencing incredibly high valuations. However, there are ways for wealth managers and investors to access this opportunity while keeping valuation in mind. Dan Smith, senior equity analyst at Canaccord Genuity Wealth Management, suggests that investing in companies that facilitate artificial intelligence (AI) rather than pure AI companies is more attractive due to more attractive valuations in that sector.

On the other hand, Storm Uru, who co-manages the Liontrust Global Technology fund, believes that the opportunity in technology is significant and just beginning. He is cautious about excessive valuations and sets target prices for the stocks he owns. If a stock exceeds the target price, he sells it unless the fundamental reason for owning the stock has improved. Uru also believes that companies benefiting from AI rather than being AI companies themselves are worth investing in.

Both experts emphasize the importance of considering valuation when investing in technology while also being aware of the potential for exponential growth. Timing when to invest and when to exit is a challenge for investors, but with careful consideration of valuation and a focus on companies with attractive fundamentals, it’s possible to maximize returns while minimizing risk.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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