Recent market activity shows some fluctuations in major AI stocks, with Microsoft and Micron Technology experiencing dips. Microsoft's stock has fallen over 20% since late October 2025, while Micron's is down about 15%. Despite this, Micron sees strong demand for its high-bandwidth memory (HBM), essential for AI, with its 2026 supply already sold out. Microsoft, a leader in cloud services, continues to expand its Agentic AI tools, which are now used by over 80% of Fortune 500 companies.
In the financial sector, artificial intelligence is increasingly shaping investment strategies. Cynta, an AI trading system, offers a CFA-supervised approach for everyday investors, demonstrating steady returns of 6 to 12 percent over the last three years while prioritizing capital protection. Similarly, fund manager FINQ has launched two new U.S. exchange-traded funds (ETFs) that use AI models for selection and management, aiming to process vast data without human emotion. LinqAlpha also uses AI, specifically an Amazon Bedrock-powered research agent called Devil's Advocate, to help investors rigorously test their ideas by finding counterpoints 5 to 10 times faster than traditional methods.
Investing in AI infrastructure remains a strong focus. The VanEck Semiconductor ETF (SMH), which includes major chip companies like Nvidia, has been highlighted as a top AI investment, boasting a 62.6% return over the last year and 1,860% over ten years. Additionally, Vertiv, a provider of critical digital infrastructure, saw its stock jump 40% after reporting strong fourth-quarter earnings, including sales of $2.9 billion, and a positive outlook for 2026, projecting 20% to 25% annual sales growth through 2026.
Concerns about AI's disruptive potential are also influencing investment shifts, with some investors moving towards tangible assets like commodities. Recent AI advancements, such as new models from Anthropic and ChatGPT-enabled insurance applications, have been linked to stock drops for companies like Mony Group. Meanwhile, China is actively boosting its AI drug discovery firms, like METiS TechBio, which raised 400 million yuan from state-linked funds. This strategic investment underscores a growing "bio-geopolitical" competition with the US over data and technology in the biotechnology sector.
Key Takeaways
- Microsoft's stock dropped over 20% and Micron's about 15% since October 2025, despite strong AI demand.
- Micron's high-bandwidth memory (HBM) supply for 2026 is already sold out due to AI demand.
- Microsoft's Agentic AI tools are utilized by over 80% of Fortune 500 companies.
- Cynta AI trading system, supervised by a CFA, has shown 6-12% returns over three years with a focus on capital protection.
- FINQ launched AI-powered US ETFs, with plans for more AI-driven funds like hedge funds and mutual funds.
- The VanEck Semiconductor ETF (SMH), holding companies like Nvidia, returned 62.6% in one year and 1,860% in ten years.
- Vertiv's stock surged 40% after reporting $2.9 billion in sales and projecting 20-25% annual sales growth through 2026.
- LinqAlpha's Devil's Advocate, powered by Amazon Bedrock, helps investors challenge theses 5-10 times faster.
- AI disruption fears, fueled by developments from Anthropic and ChatGPT, are prompting shifts to tangible assets.
- China is heavily funding AI drug makers, such as METiS TechBio (400 million yuan raised), to achieve self-reliance in biotechnology, intensifying "bio-geopolitical" competition.
Micron and Microsoft AI Stocks See Dips
Micron Technology and Microsoft are two AI stocks that have recently seen their share prices drop. Micron's stock is down about 15%, while Microsoft's has fallen over 20% since late October 2025. Micron benefits from huge demand for high-bandwidth memory, or HBM, which is crucial for AI. Microsoft, a leader in cloud services, faces some competition but sees big growth in Agentic AI, with over 80% of Fortune 500 companies using its AI agent tools. Experts suggest Micron might offer better short-term returns, but Microsoft could be a stronger long-term investment.
Micron and Microsoft AI Stocks Face Recent Declines
Micron Technology and Microsoft, two major AI stocks, have recently experienced drops in their share prices. Micron's stock is down about 15% from its peak, and Microsoft has lost over 20% since October 2025. Micron is seeing very high demand for its high-bandwidth memory, or HBM, which is essential for AI, with its 2026 supply already sold out. Microsoft, a cloud leader, is expanding its Agentic AI tools, used by many large companies, despite some recent slower Azure growth and increased competition. While Micron may offer better short-term gains, Microsoft is seen as a stronger long-term AI investment.
Cynta AI Trading System Offers Credible Investment Approach
Cynta is an AI trading system that aims to bring trust to the AI trading market. It is the only CFA supervised AI trading system available to everyday investors, guided by a Chartered Financial Analyst with over ten years of professional experience. Cynta has shown steady results of 6 to 12 percent over the last three years, verified by its users, and focuses on protecting capital. Its AI engine analyzes over 15,000 data points and only executes highly confident trades, typically once or twice a week. The system also stops trading during very unstable market times to protect investments.
FINQ Fund Manager Launches AI Powered US ETFs
Fund manager FINQ has introduced two new U.S. exchange-traded funds, or ETFs, that use artificial intelligence to make investment decisions. FINQ's AI model handles the selection, design, and management of these funds. The company believes its data-only system can process vast amounts of information better than humans, without being affected by emotions like fear or greed. These ETFs are available to various financial professionals. FINQ plans to launch more AI-driven funds, including hedge funds and mutual funds, in the future.
VanEck Semiconductor ETF Shines as Top AI Investment
For investors interested in artificial intelligence, the VanEck Semiconductor ETF, ticker SMH, is highlighted as a top choice. This ETF offers a less risky way to invest in AI compared to buying single stocks. It has an impressive track record, returning 62.6% over the last year and 1,860% over ten years, far outperforming the S&P 500. The fund focuses on companies that make semiconductors, which are the essential building blocks for AI infrastructure. Its main holdings include major chip companies like Nvidia, Taiwan Semiconductor Manufacturing, Broadcom, Micron, and ASML Holding.
Vertiv Stock Jumps After Strong Earnings and Outlook
Vertiv's stock, VRT, saw a significant 40% increase in premarket trading. This surge happened after the company announced its fourth-quarter earnings and a very positive outlook for 2026. Vertiv reported earnings of $1.36 per share on sales of $2.9 billion, beating analyst predictions for earnings. The company now expects its earnings per share to be between $3.50 and $4.00 in 2026. Vertiv also projects its sales to grow by 20% to 25% each year from 2024 through 2026.
Investing Strategies Amid Growing AI Disruption Fears
As concerns about AI disrupting various industries grow, investors are looking for new strategies. Many are shifting towards "tangible" assets like commodities and physical goods, and away from "intangible" services. Recent AI developments, such as Anthropic's new model and ChatGPT-enabled insurance apps, have caused stock drops for companies like Mony Group, St James's Place, and even software giant Dassault Systemes SE. This trend suggests opportunities in areas like energy, infrastructure, mining, and big pharmaceutical companies, which are less directly threatened by AI.
LinqAlpha Uses AI to Challenge Investment Ideas
LinqAlpha developed an AI research agent called Devil's Advocate, powered by Amazon Bedrock, to help investors thoroughly test their investment ideas. This tool allows investors to define a thesis and upload supporting documents. The AI then breaks down the thesis into assumptions and searches for information that might challenge those assumptions, working 5 to 10 times faster than traditional methods. It provides a structured critique, linking every counterpoint directly to the original source materials. This process helps investors find hidden risks and make more confident decisions.
China Boosts AI Drug Companies for Self Reliance
China's government-backed investors are significantly increasing funding for AI drug makers as part of a national effort to become self-reliant in biotechnology. For example, Hangzhou-based METiS TechBio, founded in 2020, raised 400 million yuan, or about 57.9 million US dollars, in August last year from state-linked funds. METiS TechBio has developed MTS-004, an AI-designed drug for neurological disorders, which has completed Phase III trials and is set for regulatory approval this year. Other AI drug discovery firms like DP Technology, StoneWise, XtalPi, and BioMap also receive state-linked investments. This push highlights a growing "bio-geopolitical" competition between China and the US over data and technology.
Sources
- Better AI Stock to Buy on the Dip: Micron or Microsoft?
- Better AI Stock to Buy on the Dip: Micron or Microsoft?
- Cynta Is Redefining What Credible AI Trading Looks Like
- Fund Manager FINQ Lets AI Run US ETFs
- Interested in Artificial Intelligence (AI) Stocks in 2026? Consider Buying This Top-Performing AI ETF.
- Vertiv Stock Soars. Earnings Shake Off Concerns the AI Trade Is Losing Steam.
- How to Invest as Fears of AI Disruption Grow
- How LinqAlpha assesses investment theses using Devil’s Advocate on Amazon Bedrock
- Capital injection: China backs AI drug makers in self-reliance drive
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