The mood on the stock market

The AI ​​crash continues – could be a time for bottom fishing

AI-related companies continue to plummet and experts believe that now may be the time to find buying opportunities.

Jonas Olavi, manager at Alpcot, describes the declines to DI as a “summer sale” on the stock market and says that there are several buying opportunities.

On his buy list, Olavi has American Micron and Sandisk, South Korean SK Hynix and Samsung, and Taiwanese TSMC. All companies that have fallen recently, after having previously surged.

Lars Söderfjell, head of equities at the Bank of Åland, is also starting to wonder whether the previous excessive AI optimism has now turned into excessive AI pessimism.

The decline is due to the market questioning the return on the massive AI investments that the tech giants are making, he tells EFN. Whether that is right or not remains to be seen.

– I think the jury will be out for a while yet, he says.

The semiconductor crisis deepens – major stock market falls in the US

American companies linked to semiconductors and memory cards fell sharply in early trading on Tuesday. Intel, AMD and Sandisk all fell by between 6 and 12 percent.

Violeta Todorova, senior research director at Leverage Shares, tells Bloomberg that it is about profit-taking where expectations had been set almost unreasonably high.

– Investors simply need a reason to take profits, she says.

Behind the price drops lies partly the concern that competition from China is becoming increasingly intense.

In addition, there are question marks over the so-called “circular deals”, where tech giants make big deals with each other and where leverage is rising. Then it becomes increasingly important for AI to start generating revenue.

Morgan Stanley disses Swedish shares

In a review of European shares made by Morgan Stanley, and which DI has reviewed, Swedish companies do not fare well.

On the list of the 50 European shares that the investment bank ranks highest, there is only one Swedish one, and that is Sandvik, which is in 45th place. In addition, Finnish Nordea is in 49th place.

On the other hand, four Swedish shares are on the list of the lowest-ranked shares, including clothing giant H&M.