Investors grow weary of AI hype, shift cash from Mag 7 stocks to alternatives
2026-01-08 01:25
Big technology companies that rode the artificial intelligence wave to huge gains are watching investors pull their money out and put it somewhere else. This could be a turning point after three years where these stocks ran the show. American stocks went up 78% while everyone was betting on AI companies. However, there are growing questions about whether these technologies can truly transform the economy and produce the enormous profits that proponents have claimed. Ed Yardeni runs Yardeni Research as president and chief investment strategist. He’s got a name for what’s happening. “I call it ‘AI fatigue,'” he said. “I’m tired of it and I suspect a lot of other people are sort of wary of the whole issue.” Market rotation picks up steam If the trend continues, it could end an unusual period when a few stocks drove the market. Since ChatGPT’s launch in 2022, Nvidia, Microsoft, and Apple...
