AI is making participants rich but fueling momentum over profitability, Phil Rosen notes

AI is making participants rich but fueling momentum over profitability, Phil Rosen notes
AI trade boosts market momentum investing

Phil Rosen reports that trading opportunities tied to artificial intelligence are generating significant wealth for stock market participants.

However, Rosen points out that this trend is prompting investors to focus more on buying stocks with strong momentum rather than those with solid underlying profitability, as explained by portfolio manager Paisit Fongvatananan.

Earlier this year, Rosen reported that Intuit fell nearly 60 percent, placing it among the worst-performing S&P 500 stocks. Meanwhile, he noted that Teradyne jumped 83% this year as rising AI and robotics revenue boosted its stock. These moves reflect sharp contrasts in performance among technology-related companies.

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