After months of relentless gains driven by enthusiasm around artificial intelligence, some of the world's best-performing AI-linked stocks are showing signs of fatigue as investors lock in profits and reassess lofty valuations.
The recent pullback has been most visible across semiconductor and memory-chip makers, where shares had surged on expectations of an unprecedented wave of AI infrastructure spending. While the long-term outlook for artificial intelligence remains intact, market participants are becoming increasingly selective, demanding stronger earnings growth and clearer evidence that massive capital expenditure will translate into sustainable profits, according to MarketWatch.
