Business & Finance
AI Is Splitting Tech Stocks Into Winners and Losers
Key Points
AI Is Splitting Tech Stocks Into Winners and Losers This week’s stock moves show that the AI rally has stopped being a single trade. This article is for subscribers only. If there’s one takeaway from this week’s head-snapping moves in global stocks, it’s this: the days of everything AI going up may be over.
AI Is Splitting Tech Stocks Into Winners and Losers
This week’s stock moves show that the AI rally has stopped being a single trade.
This article is for subscribers only.
If there’s one takeaway from this week’s head-snapping moves in global stocks, it’s this: the days of everything AI going up may be over.
Tuesday delivered a major scare, when a 10% drop in South Korea spilled into a near 8% slide in major chipmakers. After a brief respite courtesy of Micron’s blowout earnings report, sellers returned in force on Friday.
The reason has to do with Apple’s decision to hike prices. It’s sent the loudest signal yet of the strains coming from rising component costs. With chipmakers flexing their pricing power, other companies are being forced to pass that onto consumers.
[Image text:] 5339.45 (-4524