Yardeni Says AI Selloff Looks Overdone and Sees Buying Chance

what happened

According to Stocktwits, Ed Yardeni, president of Yardeni Research, argues that the recent drop in artificial intelligence stocks is a chance to buy rather than a signal to exit. In a CNBC interview on Friday he said: “I think the beware period is over. And there are buying opportunities.” He believes Thursday’s decline reflected an exaggerated reaction, with panic and the unwinding of leveraged positions amplifying the moves.

Yardeni named several concerns behind the turbulence: the political outcome after the midterm elections, rising bond yields and doubts about the pace of data center construction. He argues that power shortages, labor gaps, construction costs and local opposition are more likely to slow the infrastructure cycle than to halt it. He also said developers will need to show communities that their projects bring real benefits, including providing their own power.

In after-hours trading on Friday, SPY, which tracks the S&P 500, rose 0.17%, QQQ gained 0.21% and DIA edged up 0.06%. Over the day, the AIQ ETF climbed 1.32% and IYW gained 1.31%.

why it matters

The comments matter for sentiment toward technology stocks, but they are one strategist’s view rather than a forecast. Further moves in AI shares will likely depend on bond yields and on whether data center investment keeps pace.

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