Aug. 4 at 12:56 AM
AI infrastructure names are showing weakness after recent earnings reactions.
After
$VRT reported and sold off, the pressure has continued:
$POWL getting hit after earnings.
$STRL also moving lower despite already pulling back.
$ICHR held up longer than many, but the reaction wasn’t enough to change the trend.
The market is becoming more selective.
Strong AI demand alone is no longer enough — investors are focusing on valuation, margins, execution, and future guidance.
$PLTR is bouncing after earnings, but valuation remains the main debate.
The company continues executing, but expectations are extremely high, which leaves less room for disappointment.
Great companies can still be challenged when priced for perfection.
The next phase of the AI trade will likely separate businesses with real earnings power from those simply benefiting from the narrative.
