"After yesterday's debacle in which approximately $1 trillion in market capitalization was erased from the stock market, some technology stocks are still hunting a bottom. With the Nasdaq Composite now down 3% for the month of November so far, the AI rally has lost its steam for the time being as the markets wrestle with bullish fundamentals overshadowed by negative headlines. While the selling hasn't been pretty for the bulls, it does not appear to be over, at least not yet."
"Investors have been spooked by Micron's aggressive AI capex plans in which management conceded that its $18 billion plan would face headwinds. Investors are having to get used to these massive balance sheets committed massive amounts of capital to stay in the AI race. Also, profit taking is normal with a stock that has run up over 100% year-to-date. Rosenblatt has a whopping $300 price target on the stock, owing to its massive total addressable market and leaving room for plenty of upside potential."
Approximately $1 trillion in market capitalization was erased and the Nasdaq Composite is down about 3% for November so far. The AI-driven rally has cooled as markets weigh bullish fundamentals against negative headlines, producing volatile trading and continued selling pressure. Micron plunged after an 11% drop and investor concern over an $18 billion AI capex plan, prompting profit-taking despite bullish price targets from Rosenblatt and Morgan Stanley. Datadog slid sharply during the sell-off and continues to extend losses, while Advanced Micro Devices and Palo Alto Networks are also moving lower in the volatile environment.
Read at 24/7 Wall St.
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