AI picks-and-shovels stocks are still up 44% this year despite a July pullback
TiernanRayTech · x · 2026-07-28
A market note argues that Technology Letter’s TL20 basket is the best barometer of the AI trade because it is packed with picks-and-shovels names like Vertiv and Amphenol. The basket is still up 44% year to date, but it fell 7% in July after a huge run from April to June. The author says the pullback reflects profit-taking, worries about AI capex, and circular deal concerns such as the reported $250 billion OpenAI backstop tied to Nvidia, while still betting the infrastructure winners will eventually do fine.
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