I lean towards this being a repricing rather than the end of the AI trade. A 3.47% QQQ drop looks dramatic, but the bigger issue is that megacap valuations had already priced in very strong AI growth while capex keeps rising faster than investors can see the returns.
That makes the market much less forgiving. Strong revenue growth may no longer be enough if free cash flow is being swallowed by data centres, chips and infrastructure.
I would watch earnings revisions, AI monetisation and free-cash-flow trends rather than seasonality. If those remain healthy, panic selling could create opportunities. But if capex continues accelerating without corresponding profit growth, the rotation from expensive growth into value could have further to run.
For now: cautious, but not bearish on AI. I would rather buy quality gradually on weakness than call the bottom after one sharp sell-off.
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