📊 AI Swings Drive Winners and Losers

Good Morning Investors,

The market narrative continues to tilt in favor of small-caps. Analysts highlighted the potential for small-cap earnings growth to outpace the broader S&P 500 over the next two years — a key bullish talking point among strategists. Even so, caution persists. Several high-profile firms have warned of an elevated correction risk as valuations and macro uncertainty build.

Volatility across semiconductors and AI-linked industries is driving dispersion — creating clear winners and losers within the small-cap universe. For investors watching the space, AI-driven market swings and shifting capital-expenditure priorities are defining where the next phase of high-conviction opportunities may emerge.

Matthias Schneider
Editor at Analytica Investor