The article gives three reasons to be bullish on tech ETFs. First, tech sector earnings in the S&P 500 are forecast to rise 65.1% year over year this quarter, with 81% of sector companies raising EPS estimates, led by Nvidia, Micron, Dell and Intel. Second, the AI build-out differs from the dot-com bubble because hyperscalers such as Alphabet, Meta and Microsoft are highly profitable and spend a much smaller share of free cash flow than dot-com-era firms did. Third, the Nasdaq-100's P/E of 31.51 is 6% below its 33.55 level a year earlier, as earnings have grown. The article also flags risk, noting the Invesco Nasdaq 100 ETF (QQQM) fell 32.45% in 2022 before recovering.
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