Is the artificial intelligence revolution hitting its first roadblock? For the first time since the AI boom began in 2023, the industry is starting to feel the weight of expectations, and many of the tech sector’s biggest winners have been struggling amidst a volatile market. Have you checked on Meta Platforms Inc. (NASDAQ: META) lately? Down more than 20% in the last three months, and now only up 2% on the year. How about NVIDIA Corp. (NASDAQ: NVDA), the semiconductor stalwart? It’s still up more than 35% year-to-date (YTD), but only 3% of that advance has come since July. And looking at the Tesla Inc. (NASDAQ: TSLA) chart is enough to have a risk-averse investor reaching for the Dramamine.
Where have all the gains gone? Speculative assets and meme stocks had their day in the sun this summer, but the recent rotation has been to healthcare, a sector most investors left behind while chasing hot tech trends. Is this rotation a brief venture into safer water, or does it have momentum?
