AI panic vaporized roughly $1 trillion from SaaS while investors threw money at chips, data centres, power grids and anything requiring a cooling tower.
If AI disappoints, Nvidia and the infrastructure parade get repriced. SaaS may rebound when markets rediscover that corporations don’t replace mission-critical software with a chatbot and positive vibes. I see that happening gradually.
But don’t declare the Nasdaq safe. Its AI giants are elephants; the SaaS casualties are house cats. A Salesforce recovery won’t neutralize an Nvidia collapse.
And the S&P 500 isn’t innocent. The AI casino has expanded into utilities, electrical equipment, construction and energy infrastructure.
The diversification isn’t Nasdaq versus S&P. They’re different entrances to the same party.
The real exit is international markets, healthcare, financials, value and equal weight.