Why the AI-stock surge isn't like the market's meme frenzy

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AI stocks are soaring in a meme-like frenzy. Here's why investors won't have to rely on Reddit enthusiasm to sustain the rally.

to the moon in 2021 — but this time, investors won't have to rely on the enthusiasm of retail investors on social media to keep the rally going.

The moves sparked a short-squeeze that crushed returns at a number of hedge funds with large short bets. ETF powered by IBM's supercomputer Watson "Retail investor and media response sentiment is similar, but the financial strength of the underlying AI companies and broad application of AI solutions as a whole suggests there is more upside to come," Natividad told Insider.

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The rally will be huge. The crash will be even bigger. How long it lasts is another question.

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