Citi’s global strategy team advises investors to avoid the global tech trade for now. The firm wants to see cleaner positioning before returning to its previous overweight stance.
Recent weakness in tech stocks has not changed Citi’s cautious view. The team believes sentiment in the AI trade must improve first.
Citi had previously held an overweight position on technology. That stance has been pulled back amid unsettled market conditions.
The firm’s analysts see current positioning as crowded and unclear. They want a more stable setup before recommitting capital.
AI enthusiasm drove major tech gains earlier this year. Recent pullbacks have raised questions about how much optimism is already priced in.
Citi’s guidance applies to global tech exposure, not just U.S. stocks. Investors are being told to wait for better entry conditions.
The recommendation reflects broader uncertainty around AI-related spending and earnings. Until that picture clears, Citi sees limited reason to add exposure.
