AI sector stocks halve from peaks as experts see massive upside

Shares in previously hyped AI names have fallen more than 50% from highs, trading well below analyst targets. Investors are now weighing whether the selloff represents a capitulation or a fundamental shift in the sector's growth narrative.

By Handelsavisen Newsroom · Automated 2026-07-13 05:16 UTC · 1 min read

Several stocks in the artificial intelligence sector have suffered severe declines, with some shares dropping more than 50% from their recent peaks.

Despite the sharp repricing, current valuations have fallen significantly below the price targets set by many analysts, creating a divergence between market sentiment and fundamental expectations.

The selloff has triggered a debate among market participants regarding the sustainability of the AI investment theme.

While the broader market has rotated away from high-multiple growth names, specific companies within the sector are now trading at levels that suggest the market may be overreacting to short-term headwinds.

Andreas Aaen, founder and CEO of Symmetry Invest, argues that the market has fundamentally misunderstood the long-term value proposition of certain key players.

He contends that some shares are currently priced at a fraction of their intrinsic value, suggesting a potential upside of six times current levels if the companies execute on their strategic plans.