👉️ Jobs Report Exceeds Expectations: Investor Confidence is on the Rise 📈 

👉️ Tech Sector Surge: Sustainable Growth or an Overheated Bubble? 🧑‍💻 

👉️ Beehiiv: Start, Build and Monetize Your Newsletter From Your Home ✍️ 

Jobs Report Exceeds Expectations

The June jobs report exceeded expectations with 147,000 jobs added vs. 106,000 expected.

Additionally, the unemployment rate dropped to 4.1%.

This stronger than expected data reduced investor expectations of a Federal Reserve rate cut, expected in July.

Meanwhile President Trump continues his criticism of Fed Chair Jerome Powell, including calls for his resignation and reports of a potential successor, which has led to hopes for lower rates in the future.

Tech Sector Surge: Sustainable Growth or an Overheated Bubble?

The tech sector in 2025 has been a battleground.

At least that’s what it seems like from a distance.

With AI advancement fuelling investor optimism and regulatory shifts creating bottlenecks, investors are left wondering the same question that has been asked time and time again:

Will tech stocks continue to soar or crash under a mountain of pressure?

Let’s look at some examples to help navigate this complex and volatile sector.

AI Advancements: The Growth Engine

AI is to tech companies what fuel is to vehicles. Without it, you’re not going anywhere.

NVIDIA $NVDA ( ▲ 1.33% ) has been the poster child of AI infrastructure, a stock that has seen its price surge by over 270% in the last 2 years, largely as a result of consumer demand for its GPUs that power generative AI models.

Companies like Palantir $PLTR ( ▲ 1.7% ) are also riding the wave, securing defense contracts for AI-services, with its stock price rising over 750% over the last 2 years.

These two examples alone highlight AI’s potential in society as we know it. From healthcare sectors using AI-driven drug development to retail using it for personalized shopping experiences, there is no shortage of innovation across our globe.

U.S. AI spending is expected to hit $336 billion by 2028, as per Yahoo Finance.

Western Europe will be the second largest region for AI spending followed by China and Asia/Pacific (excluding Japan and China).

However, these are just the golden childs, and not all tech stocks are created equal.

Smaller AI startups like SoundHound AI $SOUN ( ▼ 1.42% ), focused on niche voice-based solutions, face larger challenges scaling without partnerships with larger cap companies.

The capital requirement to innovate AI favors giants like Microsoft $MSFT ( ▲ 1.58% ), which has integrated OpenAI’s GPT features across some of its products, serving a large portion of Fortune 500 companies.

This leads us to believe that AI is not a level playing field. Those with money will leave those without money in the dust, at least for the time being.

Regulatory Shifts: A Looming Threat

Regulatory shifts can create some bottlenecks in the tech space. In 2025, and since President Trumps came into office, the U.S. in particular has seen a more flexible regulatory environment expected to help fuel innovation, particularly in AI.

Yet at the state level, there have been many bills passed addressing deepfakes and privacy standards, which creates barriers for up and coming AI companies, and also affects those who are well established.

On a global scale, Europe’s AI Act imposes strict obligations on higher-risk AI systems, which could squeeze margins or slow down innovation.

Real-World Impacts and Investor Caution

The tech sector’s 2024 performance, led by semiconductor giants like Taiwan Semiconductors who benefitted from AI chip demand, shows investors that this sector is no joke.

However high valuations still spark bubble fears, with some going as far to call this rally similar to the dot-com era.

The key difference between now and then is that this rally is driven by tangible AI applications, and not just an idea of what it could be. However, that isn’t to say that a lot of the valuations are based on future promises from some of these companies.

Outlook: Selective Optimism

Tech stocks in 2025 offer both a large opportunity but also high risk. AI-driven growth favors companies with strong balance sheets and scalable operations, like NVIDIA and Microsoft.

If I were investing in AI today (which I do often) I would stick to companies with proven AI integration and diversified revenue streams, and completely avoid overhyped smaller companies trying to break into the space.

Why?

Because a strong balance sheet means they can weather the storm. And diversified revenue streams means that if AI innovation doesn’t pan out for that specific company, they can rely on other streams of income to stay afloat.

Like I mentioned, this is a very capital intensive industry, and those with all the cash will ultimately be the ones who come out on top.

I don’t believe its a question of boom or bust for the tech industry.

But rather who will be the losers and who will be the winners?

I Analyze Tech Stocks Every Week So You Don’t Have To

I obsess over company fundamentals and finding the needles in the haystack.

Then I let everyone in my community know what I found. Sometimes its a stock you should consider and sometimes its one to stay far away from.

But every time I look at a stock, I do so from an unbiased perspective, and let the numbers drive my conviction.

So far inside The Profit Zone Premium, I’ve analyzed:

• Taiwan Semiconductors

• Nvidia

• Palantir

• Microsoft

• Amazon

Those just being the notable ones.

If you want access to all of these deep dives so you can make sure you’re buying the right companies, click here.

On top of that, you get access to our 5 stock premium portfolio which is up 34% year to date.

I only share these stock picks with my premium subscribers, but if you had invested just $1,000 at the start of 2025, your membership would be covered for almost 2 years.

See you inside!

Alex (The Dividend Dominator)
Founder and CEO of Dividend Domination Inc.
Follow me on Twitter, Instagram and LinkedIn

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