Despite the Nasdaq 100 nearing all-time highs, a Morgan Stanley index tracking software stocks has plummeted 15% in 2026. The recent release of a new AI tool has dampened market sentiment, reminiscent of the sell-off triggered by China’s DeepSeek’s entry into AI in early 2025. Henry Jennings from Marcus Today describes this AI sell-off as resembling a horror show. However, opportunities can arise even amid downturns. Claude Walker from A Rich Life suggests that the current disruption in the AI sector will foster increased competition, presenting a chance to acquire high-quality stocks at discounted prices. Investors should look for resilient companies that can capitalize on these market dynamics, ensuring smart investments during uncertain times. Embracing this strategy can lead to long-term gains as the market recalibrates after the AI-induced turbulence.
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