Nvidia got hammered, and AMD fared even worse! AI stocks plunged across the board—is Wall Street finally done believing in fairy tales?

If there’s one thing the U.S. stock market has had faith in this year, it’s AI.
In the past, all a company had to do was announce an AI push, and its stock would take off like a rocket. Now the Nasdaq has fallen 5.5% in a single trading day, Nvidia is down 9.3%, and AMD has plunged 17.3%. Investors have finally realized that AI doesn’t just crunch numbers—it can also leave your account with psychological scars.
I think this sell-off has two causes.
The first is short-term panic selling. The AI trade was overcrowded, with everyone packed onto the same boat. The moment someone yells “abandon ship,” the cabin turns into a Lunar New Year travel rush.
The second is more concerning: data center investments are getting increasingly expensive, and financing, land, electricity, and regulation could all affect the pace of construction. The market isn’t worried that AI has no future, but rather about when companies will earn back all the money they’re spending.
So what should you buy next?
My first choice is tech giants with strong cash flow; my second is high-quality chip leaders after their valuations have been adjusted. For defense, consider consumer staples, utilities, and short-term Treasuries.
My view is simple: AI is still worth looking forward to, but not every stock with an AI label is worth buying.
After all, artificial intelligence can create wealth, but it can’t guarantee it will take the losses for you. Don’t let your account turn negative before technology changes the world!#每周来晒 and #美股史诗级抛售
$AMD