The indiscriminate buying spree that propelled global equities to record levels earlier in 2026 is fracturing, as Wall Street’s consensus on artificial intelligence breaks down into sharply divergent bull and bear cases.
Capital is no longer flowing freely into any company with an AI tag; instead, investors are becoming highly selective, scrutinizing which firms can actually monetize the technology versus those riding the hype cycle.
This segmentation marks a critical inflection point for the market.
While indices hover near all-time highs, the underlying breadth of the rally is narrowing.
Major investment banks are now openly divided on the outlook for the semiconductor sector, the traditional engine of the AI trade.
Some analysts argue that the best opportunities have already been priced in, warning of a potential correction as valuations stretch.