This round of declines in U.S. tech stocks has been far more impactful than those in crypto. The U.S. stock market has witnessed an unusual phenomenon unseen in nearly a decade: the forward valuation of the technology sector has become cheaper than the broader market. On November 5, amid post-election market concerns over AI data center construction and tighter regulatory policies, U.S. equities suffered a sharp sell-off, with the S&P 500 plunging 4.4% and the Nasdaq 100 dropping 6.4%. However, following this significant correction, data from Bank of America Truist Wealth Management shows that the S&P 500 technology sector’s forward P/E ratio for the next 12 months has nearly halved from 32x last year to 17.4x—the first time in nearly a decade that it has fallen below the overall market’s valuation level (around 18x). With this rare valuation discount, some institutional investors have begun signaling buy opportunities. Mike Wilson, Chief U.S. Equity Strategist at Morgan Stanley, explicitly stated that the plunge appears to be nearing its end and that the next two to three weeks present an ideal window to re-engage with risk assets. Ed Yardeni of Yardeni Research also believes this is merely a deflation of the AI bubble—not a rupture—and that the correction has created a favorable entry point. Research from FactSet further reveals that the S&P 500’s overall expected earnings per share for the next 12 months have still risen significantly year-to-date. Bullish investors are betting that although infrastructure spending may slow, corporate earnings momentum remains strong enough to support the broader market. This selloff has purged excessive valuation premiums; the next test will be whether AI capital expenditures can successfully translate into cash flow as expected.