ANOTHER AI BITES THE DUST

“Forget what you hear. The market does not believe all the AI numbers on spending. In fact, most stocks that were blasted on “deepseek” Monday January 27 have seen their stocks take out those January lows. For lack of a better word, most names have imploded with losses 25% and higher. We are talking the spenders, chips, data centers, construction of data centers and energy for those data centers.”

And another. Marvel Technologies (MRVL) blows up this morning. Do not forget. NVIDIA (NVDA) reported what were very good earnings and sales though decelerating. It still sold off. When perceived good news is sold off…

On top of that, our nightly scan of almost 100 semiconductor names show most in brutal bear markets. Until recently, the SOX was held up by a few big names. That’s not the case anymore.

Next up, Broadcom (AVGO) which is also down over 20% from recent highs. Maybe it will flip the switch. As always, if we see anything change, will let you know but something is up while the many keep talking this area up.