The massive AI stock rotation

If you own AI stocks, you better be paying attention because there's a massive shift happening in this market. I'm Paulina Leigh, stock market reporter. Let's break it down. In the second quarter, semiconductor stocks went wild, up about 90%. As a result, they are in overbought territory. So naturally, investors are taking back some profits, peeling back some of those gains because this extreme boom seems unsustainable. Meanwhile, you have the Magnificent Seven stocks had a pretty rough June, down about 9%. But because these companies still report really solid earnings, their stocks look downright cheap. In fact, when you look at the valuation premium, it's at its lowest in over a decade. Why is this shift happening? Well, it's because the AI trade is shifting into phase two. Moving away from training AI to now running it more efficiently. The winners of this next phase will be massive cloud companies that use their AI infrastructure to strategically lower costs. So if you were thinking about maybe trimming some high-flying semiconductor names and maybe going into Sevens that are a little down be right now, you may be thinking. More stock market breakdowns like this, like and follow for more.