AI Stock Slump Sparks Rotation Fears as Experts See No Bubble

Artificial intelligence and semiconductor stocks have fallen sharply, but experts say this is a sector rotation rather than a broad market selloff. Investors are shifting funds to traditional industries amid concerns about AI company profitability. OP's chief strategist Lippo Suominen and Danske Bank's Tuukka Kemppainen say the decline is limited to tech firms, with consumer staples and healthcare stocks rising equally. Strong corporate earnings and a resilient US economy support the market. Kemppainen dismisses fears of an AI bubble, noting tech valuations are at decade lows relative to earnings forecasts. Market volatility may ease after the US elections, historically followed by stock gains.