TOP 5 STOCKS TO WATCH AS AI STOCKS DROP!!!
In a Nutshell
Markets are vulnerable to a sharp pullback as AI hype fades, with leaders like Altman and Musk calling for slower development while the Fed is 85% likely to raise rates on Wednesday, hurting heavily debt-financed AI projects. The speaker warns against overvalued AI stocks like CrowdStrike (4,700x earnings) and NBIS (1,400x earnings), favoring caution until the FOMC decision clarifies direction. Non-AI names like Walmart and Intel are highlighted as alternatives, though Intel is viewed as fundamentally broken despite the Trump stake narrative.
These notes were generated by AI and may contain inaccuracies.
Markets have been incredibly resilient despite some fear and pullbacks. The NASDAQ ETF (QQQ) has strong support around 700 on the 1-hour timeframe, with no clear breakup pattern. Markets have historically recovered quickly from dips, though the upcoming FOMC rate decision on Wednesday, September 16th could create different conditions. There's currently an 85.5% probability that the Federal Reserve will raise rates, which would be bearish as higher borrowing costs would impact heavily debt-financed AI infrastructure projects and reduce company net profits.
Anthropic's CEO, OpenAI's Sam Altman, and Elon Musk's xAI have all acknowledged potential security concerns with rapid AI development. The leaders building the technology are now calling for a slowdown. Speculation suggests this may be due to Anthropic and OpenAI delaying their IPOs, as their S1 filings would reveal they are bleeding money with no clear path to profitability. The stated safety concerns could be a justification for cutting costs on new model training, with some believing the IPO timeline extension is the actual motivation.
The broader market has been supported by massive investments in AI and AI infrastructure companies. If AI companies slow development due to safety concerns, the timeline to profitability extends, potentially triggering market corrections. Markets haven't opened yet, so implications remain uncertain.
Sign in to read the full notes
Get access to AI-generated notes, topic timestamps, and more.