wilgolong
$CHPY The AI selloff is becoming increasingly disconnected from the underlying fundamentals.
This selloff was triggered via the earnings report from $GOOGL , despite continued growth in AI infrastructure demand and cloud computing.
Short sellers are taking advantage of fragile sentiment. Earnings-related selling created the opening, and bearish positioning and momentum amplified the downside. This stock selloff does not mean that the AI growth cycle is over.
$TSM and $NVDA remains positioned at the center of an infrastructure buildout that is still expanding. Hyperscaler AI spending isn’t disappearing because Wall Street temporarily gets nervous about returns. This is a valuation reset and a sentiment battle, not evidence that AI demand has collapsed.
I still believe the recovery into 2027 remains the most likely outcome. The market is creating volatility, but the underlying AI opportunity hasn’t disappeared.
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