AI Stocks Just Hit a Rare Bottom Signal - Is the Worst Over?

Milk Man and the analysts examine whether the AI sell-off is nearing a bottom after hedge funds moved underweight the trade for the first time since 2023 and retail investors sold an estimated $1.4 billion of US equities in one day. They argue that easing macro pressure, oversold technical signals and continued hyperscaler spending could support a rebound once election uncertainty clears.

The discussion separates companies with strong balance sheets from smaller AI infrastructure firms facing tighter, more expensive financing. The group also assesses hyperscaler cloud growth, Anthropic’s compute economics and why rising AI demand does not guarantee that every infrastructure provider will benefit equally.

Palantir’s commercial growth and customer expansion illustrate the application layer’s improving economics, even as valuation remains a concern. The analysts also explore whether token-heavy AI agents can become profitable, how usage-based pricing or advertising might help, and why Eli Lilly offers AI-related upside outside the infrastructure trade.