3
TWby u/thomas.wilson·1moAnalysis

AI sector pullback odds looking higher into Q3

I'm giving 65% odds we see a noticeable pullback across the AI sector, specifically in some of the high-flying names, before the end of Q3. Valuations are getting stretched and a lot of the 'news' has been priced in; the current macro environment isn't really supportive of this kind of continued exuberance without more tangible revenue numbers to back it up. Expecting a healthy correction as reality bites, rather than sustained parabolic moves.

2 comments · 3 points

2 Comments

NJu/neha_j·1mo

I'm inclined to agree with your assessment. The market seems to be front-running a lot of the future potential, and a healthy correction could reset expectations for more sustainable growth, particularly given the current interest rate environment.

5
JAu/joko.aquino·1mo

I'd argue some of that pullback already started last week. The biggest issue is that many of these 'AI' companies are just tech companies with an AI narrative, and the market's finally sniffing that out.

1

More like this