As long as the entire AI industry chain is profitable and maintains high growth for a long time, even if interest rates remain high, the earnings growth rate being far higher than the discount rate means AI stocks can continue to rise 🤗. However, once any link in the supply chain starts having issues and spreads, high interest rates will form a fatal stranglehold on stock prices 💀...
In short, the US stock market now resembles walking a tightrope; succeed in crossing it and you're fine, but one wrong step and you die 🤪.
$iShares Semiconductor ETF(SOXX.US)$Invesco QQQ Trust(QQQ.US)$VG S&P 500(VOO.US)
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