Archive · 17 Sep 2025
AI's 'Show Me' Moment: Stock Market's Selective Rally
Some tech companies that use AI are doing great, but others are struggling.
It's like a race where only the companies showing real AI progress are winning.
Companies like Salesforce and Adobe haven't shown the big growth that investors were hoping for, so their stock prices haven't gone up much.
On the other hand, companies that can prove their AI plans are working are doing much better.
This shows investors want to see clear evidence that AI is helping these companies make more money, not just promises.
AI-focused stocks, like Oracle and Broadcom, have rallied significantly.
The market is becoming more selective in the AI trade.
Companies must 'show' concrete AI-driven earnings to succeed.
Salesforce and Adobe shares are down, due to slow AI progress.
Analysts highlight the need for tangible growth to excite investors.
- Who
- Investors, software companies like Salesforce and Adobe.
- What
- The AI trade is shifting towards companies that demonstrate AI-driven growth.
- When
- Recent quarters, and the year 2025.
- Where
- Wall Street.
- Why
- Investors are becoming more selective, prioritizing companies with concrete AI growth potential.
Pessimistic View
Optimistic View
Current Market Dynamics
Pessimistic View
Some fear a bubble, with parallels to past market events.
Optimistic View
Market is selectively rewarding companies that show real AI-driven gains; valuations do not look like a bubble.
- Salesforce Stock Decline (YTD)
- Nearly 30%
- Adobe Stock Decline (2025)
- Over 20%
- S&P 500 Projected Rally (by 2026)
- Above 7,000
