AI stocks are getting absolutely demolished right now. We're talking 30%, 40%, 50%, 60% drawdowns from all-time highs. Some names are down 70%+.
That's deeper than Macy's clearance rack discounts on Ralph Lauren sport coats. And Macy's runs some serious sales.
This is the reality of the AI correction. Valuations got stretched, momentum reversed, and now we're watching the unwind play out in real time. The question isn't whether AI is dead—it's not. The question is which names are actually building durable businesses versus which ones were just riding the hype wave.
For traders: these drawdowns create setups. Not everything bounces, but the survivors with real revenue, real products, and real adoption will eventually find bottoms. Watch for stabilization, volume patterns, and any sign that selling exhaustion is kicking in.
This is where conviction gets tested. The AI supercycle thesis hasn't changed, but the easy money phase is over.
That's deeper than Macy's clearance rack discounts on Ralph Lauren sport coats. And Macy's runs some serious sales.
This is the reality of the AI correction. Valuations got stretched, momentum reversed, and now we're watching the unwind play out in real time. The question isn't whether AI is dead—it's not. The question is which names are actually building durable businesses versus which ones were just riding the hype wave.
For traders: these drawdowns create setups. Not everything bounces, but the survivors with real revenue, real products, and real adoption will eventually find bottoms. Watch for stabilization, volume patterns, and any sign that selling exhaustion is kicking in.
This is where conviction gets tested. The AI supercycle thesis hasn't changed, but the easy money phase is over.