The AI Hype Is Fading — And Investors Say That's the Opportunity
What Happened
The Global X Artificial Intelligence & Technology ETF has shed almost 9% year-to-date as AI hype cools. KeyBanc analyst John Vinh issued buy ratings on Intel (price target $70, 35% upside) and Micron ($600 target, 62% upside), arguing memory supply is the real bottleneck. Micron is investing $100 billion in the largest U.S. semiconductor factory ever. Barclays remains bullish on Alibaba, citing ten consecutive quarters of triple-digit AI product revenue growth despite compressed margins.
My Take
The "hype is fading" narrative is doing real work for patient investors right now. AI spending hit $581 billion last year and continues accelerating — but stock prices have disconnected from fundamentals because retail sentiment shifted. That's a textbook setup for value investors. The Micron call is particularly interesting: everyone focuses on GPU supply, but memory bandwidth is the actual constraint for running large models in production. The company building the biggest chip factory in U.S. history to solve that bottleneck is making a $100 billion bet that enterprise AI deployment is just getting started. That bet looks right.
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