The AI ‘picks and shovels' trade still has legs: Strategist

Kenny Polcari says weakness in AI enablers and beaten-down software names is creating a buying opportunity, arguing recent layoffs reflect prior hiring excesses rather than a deterioration in AI demand. The takeaway is constructive for AI-related software and infrastructure stocks, with the commentary likely to support selective value buying rather than trigger a broad sector rerating.

Analysis

Kenny Polcari says weakness in AI enablers and beaten-down software names is creating a buying opportunity, arguing recent layoffs reflect prior hiring excesses rather than a deterioration in AI demand. The takeaway is constructive for AI-related software and infrastructure stocks, with the commentary likely to support selective value buying rather than trigger a broad sector rerating.