Nowadays AI is everywhere. I thought physicians will soon face the challenge from AIs but I'm too narrow-minded. Even CEOs may lose job now and be replaced by Robot. Don't believe? Here is one real life example:
This is CEO Mika for the luxury rum company, Dictador.
Mika did a video interview with news service Reuters last week. (You can watch it on YouTube). During the interview, she said...
As a robot CEO, I don't really have weekends. I'm always on, 24/7, ready to make executive decisions and stir up some AI magic.
But hey, I don't mind. I'm here to help Dictador take over the world.
No wonder AI stocks as a whole has been on fire. SMH is an ETF housing semiconductor stocks, among which virtually all the major AI players are included such as Nvidia (NVDA), Taiwan Semiconductor (TSM), and Broadcom (AVGO) etc. They are really the AI stars for the year. SMH has gone up 18% this year so far and it is not exaggerated to say, nearly all the gains can be credited to those AI stocks!
But not many people realize that the AI sector is in a rather dire or even dangerous situation, facing a risk of being wiped out of large portion, if not more, of their fantastic gains during this euphoric run. Here is the chart I saw a few days ago. SMH was just sitting on its bearish H&S neckline. When the neckline is broken through to the downside, the bearish trend is established and per the pattern, SMH can easily go down towards 130 or lower in the weeks ahead.
Yesterday, thanks to the market plunge, SMH closed below $141, a decisive decline from its neckline around $145. So clearly the market is telling us more pains are ahead for SMH as a whole, but largely for AI stocks.
Be aware, if you are heavily in such stocks!
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