Active stock pickers who missed the AI rally now see signs of a turning point. CoreWeave shares slid last week, suggesting the trade may be entering a new stage.
The AI boom has rewarded passive investors and punished many fund managers who stayed on the sidelines. Concentration in a handful of technology names made it hard for stock pickers to beat benchmarks.
That gap may be starting to narrow. Recent weakness in some high-flying AI stocks has given selective investors a fresh opening.
CoreWeave, a cloud computing provider tied to artificial intelligence demand, saw its shares fall sharply. The move raised questions about whether the sector’s steep run-up has run its course.
Stock pickers argue the next phase will favor company-specific analysis over broad bets on AI themes. They point to widening dispersion among individual names as evidence.
Not everyone is convinced. Skeptics note that previous calls for an AI rotation have fizzled as megacap tech continued to climb.
The coming weeks will test whether recent volatility marks a lasting shift or just a brief pause. For now, active managers are watching closely for confirmation.
