AI Rotation: Tech Rally Winners and Losers

Nasdaq Rips, Futures Dip: Where the Next AI Trades Are HidingIn this episode of Breaking News to Trading Moves, we look at what is happening after tech’s biggest rally since May. US futures for the Dow, S&P 500 and Nasdaq are edging slightly lower as traders pause to digest a Fed driven rebound and a huge move in mega cap tech. WINNERS – Mega cap AI and cloud platformsWhy this group: Lower rate expectations and renewed belief in the AI boom pull investors back into the big platforms that dominate cloud and AI infrastructure. These names led the latest surge in the Nasdaq. Names to watch long$MSFT – Microsoft, at the centre of enterprise AI and cloud through Azure and Copilot.$GOOGL – Alphabet, pushing hard into AI models and tools across search, cloud and productivity.$META – Meta Platforms, leveraged to digital ads and AI driven engagement across its apps.AI and data centre semiconductorsWhy this group: Every new AI workload requires more compute and memory. When the market leans back into the AI theme, chip makers tied to data centres and accelerators typically outperform the broader tech space. Names to watch long$NVDA – Nvidia, still the key way to play AI accelerators and data centre demand.$AMD – Advanced Micro Devices, a high beta AI and data centre chip story.$AVGO – Broadcom, with strong exposure to networking and custom chips for big cloud customers.Enterprise software and cloud beneficiariesWhy this group: If AI and cloud spending stay strong, large software and SaaS names benefit from higher usage, more seats and upsell into AI tools. Their recurring revenue also looks more attractive if the Fed is closer to cutting rates. Names to watch long$CRM – Salesforce, tied to customer data, analytics and AI powered productivity.$ADBE – Adobe, playing the creative and marketing side of AI with subscription revenue.$NOW – ServiceNow, focused on AI driven automation of workflows inside large enterprises.LOSERS – Defensive telecom income playsWhy this group: When traders rush back into high growth tech, they often fund that move by trimming slow growth, high debt, dividend style stocks. Big US telecom names sit in this category and can lag on risk on days.Names to watch short or underweight$VZ – Verizon, a classic yield and income name that tends to underperform when high beta tech leads.$T – AT and T, another heavily indebted telecom where investors focus more on the dividend than growth.Utilities as bond proxiesWhy this group: Utilities trade like bond substitutes. When investors feel more confident in growth and rotate into equities with stronger upside, these “bond proxy” stocks can see outflows, especially if yields stabilise or move lower but risk appetite returns.Names to watch short or underweight$NEE – NextEra Energy, a widely held utility and renewable energy name.$DUK – Duke Energy, a large regulated utility that can lag in strong equity rallies.Gold miners and safe havensWhy this group: A strong equity rebound, led by tech and AI, usually reduces demand for classic safe havens like gold. As traders move back into growth stocks, gold miners can struggle unless there is a fresh shock that revives fear or volatility. Names to watch short or underweight$NEM – Newmont, one of the largest gold miners, closely tied to gold prices.$AEM – Agnico Eagle Mines, another major producer that often underperforms when risk appetite is strong.#StockMarket #Trading #Investing #DayTrading #SwingTrading #TechStocks #AIStocks #Semiconductors #SP500 #Nasdaq100 #GrowthStocks #MarketNews #OptionsTrading

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