Sevens Report’s Tom Essaye Flags Bubble Risk in AI-Driven Rally
Semiconductor weakness signals possible cracks in AI trade
AI-Driven Market Rally Raises Bubble Concerns: Strategist Warns of Potential Warning Signs
Tom Essaye of the Sevens Report warns that the AI-fueled stock market rally may be unsustainable, as semiconductor stocks lag the broader market.
While the S&P 500 is up nearly 14% since July 2024, the PHLX Semiconductor Index has barely broken even, raising questions about the rally’s foundation. Essaye also notes slowing U.S. job growth and rising jobless claims, cautioning that bubbles often burst in late economic cycles — with a recession posing a major risk to AI-driven gains.
Also, click here to view the full article published in AInvest.com on August 9th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.
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