Is the AI Trade Done for Now?

[lingriiddd]

AI has been a dominant theme for months, but some traders may think the robots are getting tired.

Today’s idea highlights a few key stocks in the technology sector associated with the trend.

First is Microsoft, which jumped on July 31 after strong results but failed to hold. It subsequently made a series of lower highs, and is now breaking the bottom of that triangle.

MSFT also closed under its 21-day exponential moving average for the first time since mid-April. MACD has been falling as well. Those signals may suggest its short-term trend has morphed from positive to negative.

Palantir has performed similarly. The software company gapped to new highs but then failed to hold and is now lower than it was the day of the news:

Third, Advanced Micro Devices more than doubled between late March and mid-August. But this weekly chart shows it stalling at $187.28, a peak from April 2024:

Finally, MSFT, PLTR and AMD are some of the most active underliers in the options market. That could help some traders take positions with calls and puts.

[etfs]

I dont think that its done. we will see whole different AI in future which will be so powerful