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AI-stock rally shows cracks as investor caution returns
Investors are re-evaluating the AI rally as valuations outstrip earnings and tech stocks pull back.
The recent surge in AI-focused stocks is showing visible signs of strain as valuations appear to outpace earnings gains. According to Reuters coverage, pullbacks in key AI firms and rising questions about monetisation are fueling nervousness that the market may be retracing from a speculative high. Some strategists draw parallels with early dot-com excesses.
The resulting volatility is rippling through tech indices and may reignite broader risk-off dynamics unless clearer earnings and growth signals emerge.