The AI Bubble Bursts, These Stocks Will Be Winners - AOL

Concerns about the AI trade resurfaced after the Nasdaq Composite fell 2.6%, but the pullback didn’t lift all tech-related bets. The piece cited CoreWeave sliding to its lowest level since shortly after its IPO after bond yields rose to as high as 15%. Meta fell 7% despite strong earnings, tied to its first-quarter negative free cash flow in history, linked to a surge in AI infrastructure capex. While it argues AI demand shows no sign of weakening, it says investors are questioning whether companies will recoup the spending. At the same time, yields have eased: the 10-year Treasury yield fell 3.8% to 4.95% and is down 7% over two weeks. In that environment, homebuilders jumped. The State Street SPDR S&P Homebuilders ETF (XHB) gained 3.8%, while Pool, RH and Lennar rose 14.4%, 9.5% and 9%, respectively.