Fundstrat said AI and “bottleneck” stocks have likely reached a structural bottom, arguing the selloff has run its course.
Five factors underpin that call, with the firm highlighting a massive leverage unwind that it says is largely over.
Korea was identified as the starting point of that deleveraging, which Fundstrat said appeared to hit its nadir on the day of the report.
That view suggests the recent pressure on AI-linked names was driven more by forced positioning than by a fresh deterioration in the sector’s fundamentals.