For those that didn't just start buying AI stocks, wow, what a year, huh?
I don't think a) it's going to bounce back hard or b) that "it's over". AI is clearly here to stay but now it's about pricing dynamics not that AI is being heavily invested in.
Market said yo Mag7, how you gonna keep spending like that and if you do how you gonna make that spend profitable.
Suppliers, glad you are making bank and if you look at your stocks this year we gave you higher prices. But just cause everyone is saying they are spending more, we don't believe that's forever so we may treat you as commodity like.
So it all got rerated. I diversified but am still heavily invested in AI and tech but I've gotten pickier about the ones I own. I identify possible market scenarios and try to give them each a probability. The more ways a company can survive disappointing AI spending, delayed ROI, the more interested I am.
Good luck everyone. I hope y'all adjust your thinking cause the market is in the middle of making a loud statement.