Jefferies Analyst Says AI Stocks Are Losing Their Appeal to Investors
Jefferies strategist Desh Peramunetilleke points to slowing earnings, funding risks and high valuations. Reported by WSJ Market Talk.
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what happened
Jefferies strategist Desh Peramunetilleke argues that investors may find a better balance of risk and reward beyond artificial intelligence. In his view, AI's appeal is shrinking due to slower profit growth, higher funding risks and stretched valuations.
According to the analyst, returns from AI assets weakened in the second half of the year, and profit growth in the sector is expected to slow sharply through 2028. AI shares still hold a structural growth edge, but their lead over other industries is narrowing.
As alternatives, Peramunetilleke highlights healthcare, transport and biotech, which he believes could offer interesting growth opportunities. The information is based on reporting by WSJ Market Talk.
why it matters
The Jefferies view matters for investors reviewing their exposure to technology stocks. If slowing AI profit growth is confirmed, the valuation gap between sectors could shift. The note contains no price forecasts.
tags
instruments
sources
- AI's Attractiveness Is Fading — Market Talk — Newsmetry API, 14 October 2026 at 09:36 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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