April 12, 2026
Charts say chill, comments say spill
Tech Valuations Are Back to Pre-AI Boom Levels
Wall St says tech is back to normal — commenters scream AI hangover and ‘what even is tech’
TLDR: A chart claims tech stocks are back to pre‑AI price levels as valuations fall from 40x to 20x. Commenters clap back: the “tech” bucket excludes Google and Facebook, today’s giants are capital‑hungry, AI hype is fading, and private stars like OpenAI/SpaceX still look pricey — so the debate is far from over.
A big chart says it all: tech’s price-to-earnings multiples — a common “how pricey is this stock?” yardstick — slid from 40x to 20x and are now back to pre-AI-boom levels. But the comments are carnage. One camp isn’t buying the headline at all, asking what counts as “tech” anyway? If Google and Facebook sit in the “Communications” bucket thanks to 2018’s sector reshuffle (the GICS “de-FAANGing”), then this “tech is cheaper” story might be ignoring two giants.
Another camp says today’s “tech” is basically heavy industry in a hoodie: chips, data centers, power bills — not just software. They point out the chart uses forward P/E — based on analyst guesses — and snark that analysts are merely catching up to prices that already fell. Translation: the math looks tidy because the forecast moved, not necessarily the fundamentals.
Then there’s the AI backlash brigade. One fiery take: people are tired of chatbots, companies used “AI” to squeeze pay, and hiring feels like 2022 again. Cue the meme parade: “AI Hangover 2024,” “Forward P/E is backward math,” and “Tech vs Tech-Adjacent: Cage Match.” And the closer? “Someone tell OpenAI and SpaceX,” a wink that private-market darlings haven’t exactly deflated.
Verdict: the chart says chill, but the crowd says chaos — with sector definitions, AI fatigue, and analyst forecasts all on trial.
Key Points
- •A chart compares forward P/E ratios of the S&P 500 and the S&P 500 Information Technology sector.
- •Tech sector forward P/E valuations compressed from around 40x to approximately 20x.
- •Current tech valuations are back to levels seen before the recent AI boom.
- •The data and chart are presented within an Apollo Global Management presentation.
- •Apollo’s presentation includes standard disclaimers: not investment advice, accuracy not guaranteed, forward-looking statements, and distribution restrictions.