15 of 16 AI stock baskets lost to the S&P this month as SNDK falls 44% from highs
demian_ai · x · 2026-10-17
zorgresearch argues this week's AI hardware selloff was an overcorrection driven by repriced debt: chip stocks posted their longest losing streak since October 2008, Korea tripped a circuit breaker—yet ASML says supply won't catch demand through 2028 and TSMC beat and raised.
The chart shows 15 of 16 AI stock baskets underperformed the S&P 500 (+1.3%) over the past month: Rare Earths -17.7%, Memory Supercycle -14.8%, AI Cloud/Neoclouds -11.4%, Photonics/CPO -9.9%, while only Lithography & Fab Tools (+2.9%) beat the index.
Picks and warnings: $SNDK down 44% looks like an entry, $MU trades at 5x, $CEG has nuclear contracts with three hyperscalers, $AIXA orders show capacity still expanding—avoid anyone whose AI story depends on cheap debt.
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