Today’s AI Trade: Why Great Fundamentals Aren’t Moving Stocks Right Now

Despite strong AI infrastructure fundamentals, semiconductor stocks have underperformed over the past three weeks due to crowding dynamics. A BofA survey shows 82% of fund managers view 'long global semiconductors' as the most crowded trade, creating selling pressure unrelated to business performance. The article suggests crowding-driven corrections resolve through position normalization and fundamental catalysts like hyperscaler earnings, which could bring new money back into the sector.