Something doesn’t add up.
AI stocks have pulled back sharply over the past few weeks, caught in a broader risk-off move tied to geopolitical tensions in the Middle East.
But at the same time, the companies powering the AI boom have been reporting some of the strongest numbers – and issuing some of the most aggressive forward guidance – we’ve yet seen in this cycle.
Historically, these kinds of gaps between price action and underlying fundamentals don’t last very long.
Because they can’t both be right. What will be left when the smoke clears?
This post originally appeared at InvestorPlace.