Wall Street has methodically wound down AI investment euphoria over the past year without a sudden collapse. Nvidia—the face of the AI supercycle—exemplifies this: strong earnings growth paired with stock price stagnation and P/E compression from the low 30s to around 20. Goldman Sachs and Morgan Stanley research confirm the tech sector is underperforming versus the broader market at levels unseen since the early 1970s.
Strategy
The AI trade is over. Top Wall Street analysts say the AI opportunity might be just starting
Wall Street is shedding AI stock euphoria—Nvidia's P/E compressed from the low 30s to around 20 despite earnings growth—signaling the speculative trade is ending, but analysts see the actual enterprise AI opportunity just beginning.
Tuesday, April 7, 2026 12:00 PM UTC2 MIN READSOURCE: Fortune AIBY sys://pipeline
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