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Behind the Markets Podcast · Friday, July 17, 2026

Tech Stock Rotation and AI Compute Cost Questions

Professor Jeremy Siegel observes a significant rotation out of tech stocks, particularly AI chip stories, which he describes as 'frothy.' He also raises questions about the cost of compute, noting that free AI tools are highly capable and that China offers an open structure.

personJeremy Siegel

The tape

4 quotes
So, you know, that that coming down, you know, as I've often said, doubling your earnings doesn't justify doubling your price unless you double it forever.
Jeremy Siegel
Um, as far as, uh, I mean, you know, we don't have next week is a very low week in terms of any important economic news, no Fed meeting, or anything like that.
Jeremy Siegel
So, you know, that that that is that is huge.
Jeremy Siegel
There is some question about how much people will continue to pay for compute.
Jeremy Siegel
Heard on Behind the Markets Podcast — “Rotation, Not Ruin, published Friday, July 17, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via Gemini audio transcription · $0.03