The Fed held rates again and honestly, I’m more interested in how individual tech stocks are reacting than the rate decision itself 😂
AMD gained over 3% while Nvidia actually dropped, even though both are riding the same AI trend. That tells me investors are starting to become a lot more selective instead of just buying anything related to AI.
I still like big tech long term, especially companies like Google that have strong cash flow and multiple businesses generating revenue. But I do think valuations are getting harder to justify for some companies. Spending billions on AI infrastructure is one thing, actually turning that spending into profits is another.
For me, the biggest thing to watch over the next few quarters is whether earnings can catch up with all the expectations already priced into these stocks.
If Treasury yields keep climbing, I think even companies reporting decent earnings could struggle.
Not saying tech is going to crash, but I wouldn’t be surprised to see more days where some AI stocks rally while others get sold off.
Anyone else feel like the market is becoming much more picky with tech stocks lately? 😂
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
