Thursday's AI selloff wasn't just about AI demand.
The Nasdaq fell 5.5%, while semiconductor stocks suffered even steeper losses. Goldman Sachs' trading desk reported hedge funds selling recently purchased hyperscaler positions, with institutional buyers largely absent.
That helps explain the speed of the decline. It doesn't settle the valuation question.
Forced selling can push strong and weak businesses down together. But once liquidity returns, financing costs, delivery schedules and cash generation should matter more.
The test isn't simply whether AI stocks bounce.
It's which companies can recover without relying on another round of cheap capital.
#stock
The Nasdaq fell 5.5%, while semiconductor stocks suffered even steeper losses. Goldman Sachs' trading desk reported hedge funds selling recently purchased hyperscaler positions, with institutional buyers largely absent.
That helps explain the speed of the decline. It doesn't settle the valuation question.
Forced selling can push strong and weak businesses down together. But once liquidity returns, financing costs, delivery schedules and cash generation should matter more.
The test isn't simply whether AI stocks bounce.
It's which companies can recover without relying on another round of cheap capital.
#stock