AI-related stocks face liquidation during market pullback, Adam Khoo notes

AI-related stocks face liquidation during market pullback, Adam Khoo notes
AI rally continues amid strong results

Adam Khoo, executive chairman and co-founder at Adam Khoo Learning Technologies Group, states that the artificial intelligence-driven rally in equity markets is ongoing, with current market weakness seen only as a temporary pullback.

According to Khoo, earnings growth among AI-related stocks remains strong. He notes that recent deleveraging is due to heavily leveraged investors, particularly in Korea, being hit with margin calls and forced liquidations. Khoo suggests that once this wave of liquidations is complete, the AI rally could resume.

Khoo previously noted that the Dow Jones Index has recently outperformed the Nasdaq 100 during a period of sector rotation in equities, according to a recent report. In another article, he recounted the case of a Korean student who turned $13,000 into $200,000 through leverage trades before losing it all within weeks, highlighting risks tied to high leverage positions in Korean markets.

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