Key insights
- AI stocks are pulling back, particularly high-multiple software names, while yields rise and money rotates into energy. AI infrastructure companies are holding up better. The question is whether this is a normal consolidation or a sign of deeper valuation concerns regarding AI stocks. Rising yields put pressure on high multiple stocks.
Over the past few weeks it feels like some of the big AI names have started to cool off after a huge run. We’re seeing pullbacks in a lot of the high-multiple tech stocks, while at the same time yields are rising and money seems to be rotating into energy and other sectors.
At the same time, companies tied to AI infrastructure (power, storage, semis) still seem to be holding up better than pure software plays. Do you guys think this is just a normal consolidation after a massive rally, or is the market starting to question AI valuations more seriously now?