🚨 Is the AI trade starting to lose momentum?
Samsung just reported a massive quarter with ₩89.4 trillion in profit, around $58.4 billion, marking an incredible 1,810% increase year over year, yet the stock still dropped 7.70% and is now down almost 24% from its recent peak in only 15 days.
The concerning part is not the earnings, because the numbers were strong, but the market reaction. Everyone already expected this result, from analysts to institutions to retail traders, and the stock had been pricing it in for months before the report even came out.
When a company delivers one of the strongest earnings prints in tech history and the stock sells off anyway, it shows that expectations may have gone too far ahead of reality.
That is usually what happens when a trade becomes overcrowded. The good news is already priced in, buyers are exhausted, and even record numbers are no longer enough to push prices higher.
This does not mean AI is dead, but it does suggest the AI trade may be entering a much more dangerous phase.