AI pixie dust is losing its stock market power
A broad swath of AI-related shares took it on the chin this week despite posting strong results.
TL;DR
- AI-related stocks are declining despite strong earnings and guidance.
- Investor confidence in the AI boom is waning.
- Companies like Meta, Comfort Systems, Quanta, GE Vernova, and Bloom Energy saw significant stock drops.
- Even companies like Western Digital reported astounding figures but saw stock slips.
- The AI trade's weakness impacts more than 50% of the S&P 500's market capitalization.
- A decline in the AI trade could hinder overall market momentum.