New Delhi, Aug. 16 -- Technology stocks do not appear to be in a valuation bubble despite rising growth expectations, but there could be an "earnings bubble" as investors question whether the sector's strong earnings growth can be sustained, according to a Goldman Sachs report.

"Across Technology, there does not appear to be a valuation bubble, but there may be an earnings bubble. Investors have reflected these concerns and there is Value that is emerging," Goldman Sachs Global Investment Research said in its Global Strategy Views report.

The report noted that while technology valuations have moderated, particularly on a price-to-earnings (P/E) basis, implied future growth has been rising. However, forward implied growth remains well be...