The market reaction to the suggestion for deliberate "pacing" of AI frontier model developments shows that the broad AI trade is getting selective; the AI trade is still alive but those under immediate threat/scrutiny would be sold off first while the news is being processed. Right now, those with no negative catalysts, good cash flow, revenue generating platforms and security related themes are the safe harbours for the AI trade while the hardwares takes a hit for possible slowdown in capex buildup.
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