Shares of artificial intelligence-related companies on Wall Street are under renewed selling pressure, with the sector experiencing a notable decline that has drawn attention from active fund managers.
Jonas Olavi, a portfolio manager, characterized the recent downturn as a "summer sale" on the stock market, suggesting that the volatility presents distinct entry points for long-term investors.
He indicated that specific AI names remain attractive despite the broader market retreat, framing the move as a cyclical correction rather than a fundamental shift in the technology thesis.
The pullback comes amid growing scrutiny of the capital expenditure cycle driving the AI boom.
Ruy Alves, co-manager at Kinea, has previously cautioned that the massive spending by US technology firms on artificial intelligence infrastructure may not yield proportional returns for investors in the software and services layers. This skepticism adds weight to the current market repricing, as traders weigh the sustainability of high-margin growth against the heavy upfront costs required to build and maintain AI capabilities.
While some names like Panasonic are targeting further AI growth to build on record valuations, the broader sector is facing a reality check on multiples.