The Financial Post reports in its Wednesday edition that growing doubts about sustainability of the artificial intelligence rally are pushing more investors toward old-economy stocks, says the latest Bloomberg Markets Live Pulse survey. A Bloomberg dispatch to The Globe reports that of the 221 respondents to the latest poll conducted June 22 to July 2, 53 per cent said they are inclined to buy more traditional company shares -- and take gains from the tech-stock surge -- heading into the last six months of the year.
Concerns are rising that valuations of key AI companies like Nvidia and major chipmakers may be too high, making them susceptible to a pullback if large companies reduce their significant investments in the technology.
The Philadelphia Semiconductor index has declined for two weeks after nearly doubling from late March to late June. South Korea's Kospi index, reliant on Samsung Electronics and SK Hynix, has also pulled back following a strong rise.
The recent shift has given the MLIV survey participants a less-rosy outlook for the two indexes in the second half, with 34 per cent saying the Kospi is the most likely to turn its huge upward move around and 22 per cent indicating the SOX is liable to do so.
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