The Nasdaq rose on Monday as investors rotated back into chip and AI-related stocks after a recent selloff driven by doubts about the sustainability of the AI boom. That earlier selling pressure had weighed on technology shares in recent sessions.
All eyes on Meta’s quarterly report
Market attention is focused on Meta’s upcoming quarterly earnings report, due Wednesday. Meta has seen increased investor interest amid its substantial investments in artificial intelligence.
Analyst and market commentary
An analyst speaking to CNBC said that "[before] this selloff, I think investors were assuming that all AI investments were going to pay off." Market volatility this year has led to the postponement of several tech IPOs, though the report noted Anthropic as a possible exception.
The CEO of Southeast Asia’s largest bank told Semafor that investors’ "jittery nerves" are making them more discerning and able to spot weaknesses earlier. He added, "The market’s speaking and it’s not a bad thing."
Why it matters
The rotation toward AI- and chip-linked stocks, together with heightened volatility, signals a shift in investor behavior: the market is less inclined to automatically reward every AI investment and more focused on which companies can deliver tangible returns. Meta’s quarterly results could act as a near-term catalyst for AI-exposed equities.
Outlook
Investor risk assessment and corporate results will continue to shape performance in the technology sector. In the coming days, earnings reports and subsequent market reactions will be key to determining whether the recent rise in AI stocks is sustainable.
