'Earnings Need to Be Strong': Wall Street Assesses Next Catalyst for AI Trade The recent market jitters around artificial intelligence (AI) have been a rude awakening for investors who had grown complacent in the sector's seemingly unstoppable momentum.
The S&P 500 is poised to record its second consecutive quarter of 20% plus earnings growth, and the onus is squarely on AI driven companies to deliver strong quarterly results.
The semiconductor stocks, once the darlings of the AI trade, have taken a beating over the past week. Micron Technology's share price has dropped by more than 10%, while SanDisk's has plummeted by 25%.