The relentless rally in artificial intelligence-linked stocks may be approaching a period of turbulence as rising bond yields, stretched positioning and a pipeline of mega IPOs begin to test investor appetite, according to Jefferies strategist Christopher Wood.
In his latest GREED & Fear note, Wood said there is still no evidence that AI-related capital expenditure is slowing. However, the combination of elevated valuations, concentrated positioning and looming liquidity demands has increased the risk of a near-term correction in the sector.
