I see this as a selective buying opportunity rather than the AI bubble bursting. A 40–60% collapse in individual names suggests that excessive positioning and valuation are being flushed out, but it does not automatically invalidate the structural AI demand story.
The key distinction is AI fundamentals versus AI valuations. Spending on compute, cloud infrastructure and memory can remain strong while share prices fall because expectations had simply run too far ahead. I would favour profitable companies with strong cash flow, pricing power and visible AI revenue, rather than buying every beaten-down AI name.
My outlook: volatility probably remains elevated and another leg down is possible, but if earnings and AI monetisation continue to improve, this correction could ultimately create healthier entry points. Buy quality gradually, not the hype indiscriminately.
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