Spending fears have put AI stocks in correction or consolidation as of late July, but it is unlikely the uptrends in leading names have ended.
The biggest hurdles are fear and summer trading conditions, which often leave markets trending sideways with price action disconnected from reality. The critical details are that AI spending trends remain intact, pointing to strength for those providing utility to the industry. They are likely to see robust revenue and earnings gains in the back half, when normalized trading resumes, triggering their markets back into action.
