Citi’s Montagu Warns US Tech Rally at Risk From Profit Taking

US technology stocks face growing risks as investors seek to cash in on this year’s record-breaking rally, according to Citigroup Inc. strategists.

The Nasdaq 100 is most vulnerable to the threat, after soaring 46% from its April lows thanks to resurgent enthusiasm around advances in artificial intelligence. The tech-heavy benchmark set its latest record on Monday after Advanced Micro Devices Inc.’s blockbuster deal with OpenAI.

“Profit-taking risks have rapidly risen across markets, and are particularly elevated for Nasdaq, potentially hampering further upside,” the Citi team led by Chris Montagu wrote in a note.

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