Fund Managers Shift Focus to Earnings in AI Rally

The shift to an earnings-verification phase marks a critical juncture for the AI rally, as it separates companies with tangible order books and revenue from those merely riding the thematic wave. The widening sector divergence underscores that the market's next leg will be driven by fundamental delivery, not narrative, which could recalibrate valuations across tech and downstream industries. The key watch is whether reported profit growth in leading sectors—like electronics and AI hardware—can sustain momentum into subsequent quarters, and if lagging sectors will see any catch-up or further divergence. This dynamic will likely dictate capital rotation and fund positioning in the near term.