Tom Essaye Warns AI-Fueled S&P 500 Rally Risks Dot-Com Style Downside

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Sevens Report’s Essaye flags downside risks tied to semiconductors

Bank of America Warns S&P 500 Tops Dot-Com Bubble on AI Stock Surge

Bank of America strategists warn that the S&P 500 has surpassed dot-com era valuations, fueled by an AI-driven surge in tech leaders. Industry analysts echo similar concerns, including Tom Essaye of Sevens Report Research, who points to semiconductor indices as a key risk factor.

Essaye cautioned in remarks cited by Business Insider that if economic resilience falters, the sector could drag the broader market lower. His outlook: “considerable downside” in coming quarters, especially if inflation reaccelerates or geopolitical tensions disrupt supply chains.

Adding to the vulnerability, passive investing trends may be amplifying bubbles. With index funds funneling capital into overvalued leaders, market corrections could be sharper when momentum unwinds.

Also, click here to view the full article on Webpronews.com published on August 15th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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AI Market Rally Shows Cracks as Semiconductors Lag S&P 500 – Tom Essaye

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Sevens Report founder warns of late-cycle risks amid slowing economic data

BofA Warns of Dotcom Bubble Vibes in S&P 500 Valuations

Bank of America analysts compared today’s valuations to the late-1990s dotcom bubble, and Sevens Report Research founder Tom Essaye echoed those concerns. He noted that the AI-driven rally may be masking underlying risks, particularly in semiconductors.

“The SOX index isn’t keeping pace with the S&P 500, and that’s a red flag,” Essaye said, pointing out that chip stocks are the backbone of AI innovation. “If semis can’t lead, then it calls into question the sustainability of this rally.”

Essaye also flagged weakening economic indicators, including soft job gains and rising jobless claims, as evidence that the U.S. may be entering a late-cycle phase. Together, those factors increase the risk that today’s market exuberance could mirror past bubbles.

Also, click here to view the full article on Ainvest.com published on August 15th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Semiconductors Signal AI Bubble Risks, Essaye Warns

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Sevens Report highlights divergence between SOX and S&P 500

What happens to the stock market when the AI bubble bursts?

A lack of ROI and diminishing returns in artificial intelligence make its bubble a question of when, not if, according to Sevens Report Research founder Tom Essaye. He pointed to semiconductor stocks as the “canary in the coal mine” for the AI trade.

In a recent client note, Essaye highlighted that the PHLX Semiconductor Index (SOX) remains below its July 2024 highs, even as the S&P 500 gained more than 10% in the same stretch.

“The takeaway here is that if AI remains the primary source of bullish optimism for a continued rally in the broader stock market in the months and quarters ahead, this market is in trouble and at risk of rolling over sooner than later as the SOX should still be leading the market higher like it was in 2024, not lagging considerably over the last 12 months,” he wrote.

Essaye cautioned that if the SOX begins to materially sell off, the S&P 500 will likely follow.

Also, click here to view the full article on Livewiremarkets.com published on August 13th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Nvidia, AMD Deal with Trump Administration Eases AI Investor Fears: Tom Essaye

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Chip sales to China continue under new revenue-sharing agreement

Nvidia & AMD investors can put China chip tariff risks ‘to bed’

Sevens Report founder Tom Essaye and Allspring Global’s John Campbell discussed reports that Nvidia and AMD reached a deal with the Trump administration to resume selling chips in China, with 15% of the revenue going to the U.S. government.

Essaye said the agreement signals that the companies are “ready to play ball” with policymakers to protect growth in the AI sector. “Eighty-five percent is a lot more than zero,” he noted, calling the resolution a relief for AI-focused investors now that a major uncertainty has been removed.

Also, click here to view the full video featured on Yahoo Finance published on August 11th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Tom Essaye Interviewed: Bitcoin Still Speculative but Poised for Long-Term Gains

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Institutional adoption and policy push could fuel higher prices

Is it time to view bitcoin as a stock?

John Campbell of Allspring Global Investments and Sevens Report founder Tom Essaye discussed bitcoin’s evolving role in markets, with Essaye noting that while the cryptocurrency remains somewhat speculative in the short term, institutional adoption is accelerating.

Essaye highlighted growing integration of bitcoin into traditional finance and banking, alongside policy support from the administration, as bullish long-term drivers. “Is it short-term a little frothy? Sure,” he said, “but longer term there are some fundamental changes here that I think will send it much higher.”

Also, click here to view the full video featured on Yahoo Finance published on August 11th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Tom Essaye: AI Market Maturing as Winners Like Palantir Pull Ahead

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Execution separates outperformers from laggards in evolving AI trade

C3.ai stock nosedives on preliminary earnings: Where the AI trade stands

Allspring Global Investments’ John Campbell, Sevens Report founder Tom Essaye, and Yahoo Finance’s Brooke DiPalma discussed the divergence among AI stocks, highlighting Palantir’s strong earnings and raised guidance as a sign of successful execution in the sector.

Essaye noted that while some AI names continue to struggle, companies delivering results are commanding lofty valuations — with Palantir’s forward P/E ratio exceeding 500 — reflecting investor willingness to reward performance in the maturing AI market.

Also, click here to view the full video featured on Yahoo Finance published on August 11th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Tom Essaye Warns AI-Driven Stock Surge Shows Classic Bubble Traits

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Sevens Report founder sees parallels with past late-cycle manias

US Stocks Drop as Investors Wait on CPI Data to Set Fed’s Path

The current equity rally may be entering bubble territory, according to Sevens Report founder Tom Essaye, who advises some of Wall Street’s largest firms. Essaye points to weakening U.S. economic conditions alongside stretched valuations, with the S&P 500 up 28% since April and 57% since ChatGPT’s debut in November 2022.

In an August 1 client note, Essaye compared today’s AI-fueled rally to past bubbles, such as the internet and real estate booms, where a single narrative drove expectations of “unlimited earnings growth” across sectors. He warns that the AI theme now plays that role, creating risks for advisors managing long-term portfolios.

Also, click here to view the full article featured on The Wealth Advisor published on August 10th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Sevens Report’s Tom Essaye Flags Bubble Risk in AI-Driven Rally

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Semiconductor weakness signals possible cracks in AI trade

AI-Driven Market Rally Raises Bubble Concerns: Strategist Warns of Potential Warning Signs

Tom Essaye of the Sevens Report warns that the AI-fueled stock market rally may be unsustainable, as semiconductor stocks lag the broader market.

While the S&P 500 is up nearly 14% since July 2024, the PHLX Semiconductor Index has barely broken even, raising questions about the rally’s foundation. Essaye also notes slowing U.S. job growth and rising jobless claims, cautioning that bubbles often burst in late economic cycles — with a recession posing a major risk to AI-driven gains.

Also, click here to view the full article published in AInvest.com on August 9th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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SPX: Three Key Market Drivers Right Now Says Essaye

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Economic growth overtakes tariffs as top market influence

SPX: Today’s Three Most Important Stock Market Drivers

Stocks rallied Monday after last week’s sharp pullback, but Tom Essaye of the Sevens Report says fundamentals have slightly worsened since July.

Economic growth is now the primary driver of markets, with recession fears posing sharp downside risk regardless of Fed rate cuts. Fed policy ranks second, as investors look for confirmation of a likely September cut. Tariffs, once the dominant factor, now rank third, with rates expected to settle between 15%-20%, raising stagflation risks but adding some trade stability.

Also, click here to view the full article published in the MoneyShow on August 6th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Watch These Gold Levels as Bulls Target New Highs

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Watch These Support and Resistance Levels as Gold Eyes New Highs

Gold’s bullish primary trend, intact since late November 2023, remains in place after record June highs, though momentum is fading. Tom Essaye of Sevens Report says bulls’ key threshold is $3,450, with resistance at $3,444, $3,473, and $3,510, and support at $3,328, $3,284, and $3,181.

Mid-morning Treasury volatility Wednesday briefly pushed gold to session highs before prices settled flat, just under near-term resistance. The $3,325 level is critical support in the short term.

Also, click here to view the full article published in the Moneyshow on August 8th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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