#USStocksFaceHistoricSelloff $NVDA $AMD $SPX

‍#美股史诗级抛售 #DailyStandouts #ShareWeekly
The AI Trade Is Being Repriced. The Next Question Is Where the Money Goes.

Thursday's market action was a serious warning for investors who had become comfortable with the idea that AI-related stocks could keep rising regardless of valuation. The Nasdaq dropped 5.52%, the S&P 500 lost 4.36%, and the Philadelphia Semiconductor Index plunged 12.25%. Nvidia fell roughly 9%, while AMD lost more than 17%.

This was not just a weak session for a handful of expensive stocks. Selling spread across semiconductors, data-center infrastructure and other parts of the technology supply chain.

But I would be careful about calling this the end of the AI trade. A sharp correction can happen for two very different reasons: investors may be reducing leverage and locking in profits, or they may be losing confidence in the future earnings that justified high valuations.

Those scenarios can look similar on a price chart. Their longer-term implications are very different.

The Infrastructure Story Has to Prove Its Returns

For months, the market rewarded companies connected to the physical expansion of AI: advanced chips, memory, servers, networking equipment, cooling systems and data-center capacity.

The investment opportunity was built around a simple assumption. If demand for AI computing keeps growing, companies supplying the infrastructure should benefit.

Now investors are asking a harder question: how quickly will all that spending turn into sustainable revenue and profits?

Data-center projects require enormous capital, reliable electricity, cooling, construction permits and long-term financing. If projects are delayed or their economics become less attractive, equipment orders may also be pushed back.

That does not mean demand for AI disappears. It means the timing and profitability of the investment cycle matter more than the size of announced spending.

The market is also reacting to political uncertainty around data-center development and energy consumption. These concerns could affect project timelines, but they are not proof that existing chip demand has suddenly vanished.

What the Charts Are Saying

The attached daily charts show why I would avoid rushing into a recovery trade.

Nvidia is trading around $182 on the screenshot, with RSI near 28.37 and negative MACD momentum. The first important recovery area is around $207.78, followed by $212.56 and $219.72. A move back above those levels would improve the technical picture, but until then, rallies can still face selling pressure.

AMD is around $410 on the chart, with RSI near 34.74 and negative MACD momentum. The $423–$424 area is the first recovery zone to watch. Above that, $505–$513 becomes a much bigger resistance region. The distance between current price and those higher levels shows how much technical damage the stock has suffered.

Palantir is also showing weakness, with RSI near 26.64 and price around $153–$155. The $154.47–$154.94 area is an immediate level to reclaim, while $185.27 is a higher resistance reference. A low RSI can indicate oversold conditions, but it is not a buy signal by itself.

Qualcomm is around $156–$157, with RSI near 38.21. The chart shows resistance around $170–$174 and a nearby lower reference around $156.44. A sustained recovery above the $170 area would be more convincing than a single green candle.

These are levels taken from the attached screenshots, not guaranteed support or resistance. Price can move quickly, so they should be refreshed before any trade.

Could AI Applications Become the Next Opportunity?

This is where I think investors should broaden their watchlists.

If capital becomes less willing to fund the infrastructure story at any price, attention may shift toward businesses that can demonstrate direct financial benefits from AI.

That includes enterprise software, automation, cloud services, cybersecurity and businesses using AI to improve advertising, productivity or customer operations.

But applications are not automatically safer investments. Companies still need paying customers, repeat usage, improving margins and evidence that AI is creating additional revenue rather than simply increasing operating costs.

The next leadership group may not be the companies talking most loudly about AI. It may be the companies showing measurable returns from using it.

Today's NFP Could Change the Short-Term Picture

The October U.S. employment report is scheduled for 8:30 AM ET on November 6. Traders will be watching payroll growth, unemployment and wage data for clues about the economy and future interest-rate expectations.

A stronger report could support the view that the economy remains resilient, but it may also keep rate expectations higher. A weaker report could increase hopes for easier monetary policy, while raising concerns about economic growth.

Neither outcome guarantees a stock-market recovery. In a market already under pressure, the reaction to the data may matter more than the headline number.

My Take

I see this as a valuation and confidence test for the AI trade, not enough evidence to declare the AI cycle finished.

My approach would be to avoid catching falling prices simply because RSI is oversold. I want to see selling pressure slow, important levels reclaimed and buyers show that they can hold those levels.

I would also watch application software, cybersecurity and automation for signs of stronger relative performance. If those areas hold up while chip stocks remain weak, it could signal a shift in market leadership rather than a complete exit from AI.

The real opportunity may come from separating companies with genuine AI-driven earnings from companies whose valuations depend mainly on future expectations.

Do you think this selloff is mainly short-term deleveraging, or are investors starting to question the entire AI infrastructure spending cycle? And which area would you watch next: chips, data centers or AI applications?

Not financial advice.
@Gate_Square