AI Rally May Have Gone Too Far With Some Stocks Up 70% in a Month
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AI Rally May Have Gone Too Far With Some Stocks Up 70% in a Month
"“The forward-looking risk lands on software. Names like DDOG, ORCL, APP, FTNT, and CRWD now”"
AI-driven stock gains have expanded beyond major AI leaders into AI-adjacent and software and cybersecurity names. Qualcomm rose about 70% in a month despite only decent results and guidance that pointed lower for the next quarter. Other notable rallies include Datadog, Oracle, Fortinet, AppLovin, and CrowdStrike. Microsoft has recovered but remains below prior highs despite strong AI revenue momentum. The bullish case centers on valuation and earnings growth, with many non-Mag 7 stocks trading around 19 times earnings and earnings growth near 20%. The main risk is that software earnings may not keep pace with the elevated expectations.
#ai-stocks #market-valuation #software-earnings #cybersecurity #stock-rally
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