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Adam Khoo, executive chairman and co-founder at Adam Khoo Learning Technologies Group, warns that a major correction in AI Capex stocks is inevitable. Khoo suggests that when a 50 percent drawdown occurs in these stocks, investors will likely see capital move back into less fashionable, non-AI sectors.
Khoo emphasizes that the timing remains uncertain, but advises market participants to be prepared for this anticipated shift.
Khoo previously stated that ServiceNow’s earnings dispelled concerns about AI agents disrupting SaaS models. In another update, he noted that GOOGL was nearing NVDA to become the world's largest company by market value. These developments add context to Khoo’s ongoing assessment of technology and AI-driven stocks.