📉 Are the AI Trades Getting Tired?

[bonk]

AI has dominated market narratives for months — but some of the trend leaders are flashing fatigue signals.

Microsoft (MSFT)
Jumped on earnings (July 31) but couldn’t hold the highs. It’s been making lower highs since, and just broke the bottom of its triangle. Closed under the 21-day EMA for the first time since April. MACD rolling over too = short-term trend may be shifting negative.

Palantir (PLTR)
Classic “gap-and-fade.” Shot to new highs on big news… only to give it all back. Now it’s lower than the breakout day.

Advanced Micro Devices (AMD)
Doubled since March, but weekly chart says stalling. $187.28 (April 2024 peak) acting like a ceiling.

Options Heat
MSFT, PLTR, and AMD remain among the most active underliers in the options market — perfect battlegrounds for calls & puts depending on your read of the trend.

Takeaway: AI names aren’t dead — but momentum is clearly pausing. For active traders, this is when risk/reward flips. Either you fade tired moves… or prepare for the next surprise squeeze.

What’s your play here — short the “AI exhaustion,” or load up before the next leg higher?

[Nahid10]

This looks like the classic “pause after the hype run.” MSFT losing its 21-day EMA and breaking the triangle is a technical warning sign, but let’s be real — the AI narrative isn’t going away. Palantir’s gap-and-fade hurts short-term momentum traders, but they’re still one of the few firms with real government + enterprise AI contracts. AMD is trickier: they’re riding AI GPU tailwinds, but if $187 keeps rejecting, that ceiling could become a heavy lid. Personally, I’m leaning toward fade the rallies here until we see either a reset to stronger support or fresh catalysts.

[jacson4]

I’m in the opposite camp — I see this as healthy digestion. Every AI leader had a massive run, and some consolidation is normal before the next leg higher. The options heat shows traders are still obsessed with these names, and that liquidity makes them prime for squeezes if sentiment flips. MSFT in particular has too much cloud + AI integration to stay weak for long. PLTR is always volatile, so you almost have to expect “gap-and-fade” behavior. If anything, the exhaustion you’re seeing could just be smart money shaking out weak hands before another push.