Key insights
- The post highlights a disconnect between the long-term AI narrative and recent negative price action in AI-related stocks. Despite strong fundamentals like data center construction, enterprise spending, and chip demand, many AI stocks experienced significant sell-offs. The author questions whether these drops are due to sentiment or deteriorating fundamentals, and is looking at technicals and fundamentals to determine the best course of action.
the long term AI story hasnt changed. data centers are still being built, enterprise spending is up, chip demand is growing. but short term the price action is brutal. basically everything AI related got crushed last week.
im trying to figure out which stocks are dropping because of sentiment vs which ones actually have deteriorating fundamentals. some of these companies are posting 40%+ revenue growth and still getting sold off 15-20%.
how are you guys thinking about this? are you looking at technicals, fundamentals, or just waiting for the dust to settle?