Aug. 1 at 1:52 AM
$MU $SKHY $DELL $AMD $SOXX
Today many of the AI Infra names gave up much of the gains and some went red as well.
My thinking is that the liquidation of a highly leveraged AI Tech fund may have made other leveraged traders more cautious. Instead of waiting to be forced out, they likely reduced leverage, booked profits, with crowded high-beta AI infrastructure names getting sold first.
At the same time, money rotated into lower-beta names that showed strong cloud growth and clear AI returns, along with expectations that AI infrastructure capex growth could start to slow.
