One chip rally does not mean the AI trade has fully reset.
Micron and Qualcomm helped tech sentiment rebound.
But SPY, QQQ and NVDA are still not confirming a clean risk-on move.
Crypto is weak too.
BTC and ETH are not trading like narrative is enough.
They still need easier liquidity, stronger flows, and clearer regulatory catalysts.
Many assume: “Spot a dip in AI - pile in.” But that’s an oversimplification that can be costly.
Even with strong prospects, AI stocks can fall when rates rise and the dollar strengthens. You’re buying future profits, and higher rates discount those more heavily.
Before buying, check:
• Bond yields
• Dollar strength
• Fed expectations
• Valuation trends
• Real demand vs hype
AI can be a great story - and still disappoint 🫣 $SPCX
It sits just beside it - in the gloriously unglamorous infrastructure that makes it all work.
$NVDA, $AMD, $TSM, $ASML, $AVGO, $MU, $SMCI, $AMAT, $LRCX, $KLAC, $EQIX, $DLR, $VRT, $ETN, $ABB, $FANUY, $RTX, $LMT, $NOC, $PLTR
The next great AI trade, my friends, may not be in chatbots at all.
Over 70% of AI investment in the next three years is heading not into flashy apps, but into the dull, indispensable machinery beneath them.