Gold Sachs has warned that the tech sector is experiencing its weakest performance in 50 years, blaming new AI developments for its weakness. The warning comes as a shock for a stock market that has been tech-oriented for years, with the biggest names dominating. Goldman Sachs attributes this shift to a shift in AI developments that began in 2025, which began to blur the lines around which company had a competitive edge. The cost of chasing this edge rapidly rose, raising concerns over potential returns. Despite this, tech stocks have seen a rebound, but the leadership isn't clean enough to call it an all-clear rally. The shift towards real-world assets is seen as a shift from tech to energy and industrials, with semiconductors or chip stocks emerging as frontrunners. However, the gap between performance and fundamentals is a major theme shaping markets.