Jun. 5 at 1:21 PM
Profit Taking Into Profit Margin Bubble
I discuss why the AI trade may be entering a more challenging phase as investors begin taking profits on record-high profit margins and "priced for perfection" expectations.
Using valuation data, shifting AI ROI narratives, and examples like
$NVDA and SK Hynix
$EWY generating exceptionally high margins, I explain why current profitability may be difficult to sustain.
I also review the bearish reversals in
$AVGO and
$CIEN and what they could signal for AI leadership going forward.
https://youtu.be/0UvI1V-s_qg