Goldman Sachs said on Tuesday that technology stocks, including U.S. stocks, are now cheaply valued after a prolonged period of underperformance, creating potential entry opportunities for investors. "We've witnessed one of the weakest periods of relative returns for the technology sector in 50 years," the firm stated. Multiple factors have contributed to the overall weakness of the technology sector since 2025, prompting investors to shift towards value stocks. These factors include the launch of DeepSeek, massive capital expenditures by U.S. mega-corporations, and the disruptive impact of AI-driven software. These factors have provided opportunities for investors to enter the sector, which currently exhibits strong growth but low valuations. The valuation premium for U.S. mega-corporations has declined and is now almost in line with the rest of the sector. Globally, the IT sector's price-to-earnings ratio is lower than that of the consumer discretionary, consumer staples, and industrial sectors. Goldman Sachs noted that despite the low valuations, the technology sector's earnings performance remains strong. Among the S&P 500 sectors, the market consensus is that the IT sector's Q1 earnings per share will grow by 44%, accounting for 87% of the index's earnings per share growth. (Jinshi)