Yesterday was a bad day for the Technology Sector. This is the results of the day for those stocks that I own which I consider to be my AI stocks.
There is an awful lot of red in that list! And big numbers too! It’s even more interesting that the ones in the green are those that have been pretty consistently red for a long time. A lot of writers have been saying that this is the bursting of the AI bubble. Others just say that a lot of stocks have been overvalued for a long time and this is the day of reconning.
It seems to me that the valuation comments have some truth to them. I only say that because of the ones that went up, (Hewlett Packard, Super Micro and United Microelectronics) are stocks that nosedived a while ago and have been down for quite a while. Both Hewlett Packard and Super Micro make systems for data centers and have not been getting much attention from investors while Nvidia, AMD, and Palantir have stolen the limelight.
There are others in the AI and Technology space that have dropped by big numbers too. While Microsoft went up a little last night, it is dropping fast in this morning’s pre-market. Seagate dropped 5.8 percent yesterday and is still dropping this morning. Apple seemed to hold it’s own, but it’s starting to show negative numbers this morning.
I did notice that the Materials Sector stocks and even some of my Real Estate Trust stocks had a pretty sharp rise yesterday, but it doesn’t seem like the healthcare stocks that often-become havens for investors when they feal the AI bubble, didn’t go up that much. It seems that my two communications stocks (Verizon and ATT) both continued a nice slow climb after the big leap on Monday.
I had been considering increasing my stake in Palantir and Nvidia. Maybe this is a buying opportunity? On the other hand, maybe this isn’t a good time. If other investors are re-balancing their portfolios, then maybe I should leave them where they are and look at the Materials Sector which seems to be going up.
Here I am, overthinking again. I know that I shouldn’t, but I think I am going to wait a little bit before doing anything drastic.
