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Home Market Outlook Today's Market Summary The AI trade's sharp selloff is driven by macro fears surrounding AI credit risk and potential data center delays after Democratic sweep of Congress, not deteriorating fundamentals. Underlying demand for compute and AI infrastructure remains robust, with hyperscaler cloud growth accelerating and hardware shortages persisting. Current market dislocation has created steep discounts in high-quality AI stocks, offering rare selective buying opportunities for disciplined investors.
I maintain a nimble approach—expanding positions in top AI names while preserving liquidity and expecting the AI selloff to resolve in one of the three possible ways. Looking for a portfolio of ideas like this one? Members of The REIT Forum get exclusive access to our subscriber-only portfolios.
Learn More » adventtr/iStock via Getty Images Introduction The AI trade is seeing an absolute bloodbath. While the S&P 500 ( SPY ) is down just 3.7% since October 1, the VanEck Semiconductor ETF, SMH ( SMH ), has plunged close to 25% during this time period. Last week, semiconductors suffered 8.53K Followers Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, META, SITM, ALAB, AMD, CRDO, AAOI, VRT, PLTR, MU, SNDK, STX, IGV, GLD either through stock ownership, options, or other derivatives.
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Source: Seeking Alpha
