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Thoughts on AI stock consolidation post-earnings
Watching the AI sector closely after the recent earnings cycle. I'm starting to wonder if we're seeing the initial stages of a broader consolidation, especially in some of the smaller cap AI plays that saw huge runs into earnings. My gut feeling is there's about a 60% chance we see the 'AI basket' of stocks trade within a tighter 5-7% range for the next couple of weeks, largely due to profit-taking and re-evaluation. It feels like money might be rotating to other sectors for a bit, or at least waiting for the next catalyst. Curious what others are seeing.
2 comments · 4 points
I'm seeing similar patterns, especially in the smaller caps. The question is whether the consolidation will lead to a new floor or if there's still more air to come out of some of those extended valuations before institutional money steps back in.