AI euphoria to end? Chris Wood warns mega IPOs, bond pressures may trigger tech correction

Chris Wood has warned that elevated valuations, concentrated investor positioning in AI names, looming mega IPOs like SpaceX, and rising US Treasury yields have significantly increased the risk of a near-term correction in the AI/tech trade. Foreign investors reduced US Treasury holdings by $138.4 billion in March, the biggest monthly decline since September 2022, raising global yield pressure. Despite strong AI capex, a Bain survey of 951 companies found nearly 40% achieved less than 10% cost savings from AI, even as 90% plan to increase AI budgets.