US equities ended the week with a sharper debate over whether the AI trade has run too far.
Early in the week, research leaned into the AI buildout: bullish calls on memory names like Micron and Sandisk as the current bottleneck, on cybersecurity as a necessary AI complement, and on utilities and energy to power data centers. Software was treated selectively — Salesforce, ServiceNow, Microsoft and Palantir flagged as resilient, while broad software baskets were viewed as exposed to AI disruption. Rivian drew a slow-grind bull case; MicroStrategy and the ARK Innovation ETF drew sharp bear cases.
By late week, the published consensus shifted more cautious on semiconductors and the broader AI complex. Multiple analysts argued chip stocks have become crowded, cyclical and stretched on valuation, comparing the capex surge to prior tech overbuilds and pointing to an 8% weekly drop in the Philadelphia Semiconductor Index. One thread also called the S&P 500 meaningfully overvalued, while another expected July seasonality and buybacks to support a rebound.