Core Viewpoint - The TMT sector in the US stock market is showing signs of high valuation, market concentration risks, and increased internal stock correlation, reminiscent of the 2000 dot-com bubble period [3][4][10]. Valuation - The TMT sector's forward P/E ratio has reached 26.7, the highest since 2009, significantly exceeding the historical average of 16.9 by 8.7 standard deviations [3][5]. - Excluding the "Tech Seven" giants, the remaining companies in the TMT sector show even more severe signs of valuation bubble, with a P/E ratio nearing 24.4, which is 11.7 standard deviations above the 2015-2019 average [5][7]. Market Concentration - The TMT sector accounts for 44.2% of the S&P 500 index's total market capitalization, approaching the historical peak of 44.7% set in February 2000 [3][10]. - The sector's market share has increased from 33.8% pre-pandemic, indicating a significant concentration risk [10][12]. Earnings Growth - The TMT sector has outperformed the S&P 500 in earnings growth since Q3 2023, with expectations of an 11.8% growth rate by the second half of 2025, which is 1.8 times the overall index growth [8]. - However, this growth advantage is projected to narrow by 2026, with TMT earnings growth expected at 15.5% compared to the index's 12.3%, suggesting a potential shift of funds from tech stocks to undervalued sectors [9]. Internal Correlation - The internal correlation among TMT stocks has risen, often seen as a precursor to market pressure [14][15]. - Historical data indicates that significant increases in correlation have preceded market corrections, with the last low in correlation occurring in July 2021, followed by a market adjustment approximately six months later [15][16].