Bernstein Analyst Admits Wrong Call on AI Stocks but Stays Bullish Long Term

TLDR Bernstein says the AI bear case is not compelling but a full recovery in AI stocks could take time. The SOX chip index is down 38% from its June 22 high. Nasdaq fell 3.4% last week and the S&P 500 had its worst week since June. Bernstein cut price targets on Lumentum, Celestica and Corning. Next week brings October consumer price index data. Bernstein analyst Daniel Zhu says the bear case on AI does not sound particularly compelling. He still admits it is hard to disprove in the short term. He also said a full recovery in AI-linked stocks could take time. “We were wrong to be bullish on AI on the short term,” Zhu wrote. He was referring to the firm’s Sept.

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