Danske Research Team notes that global equities slipped, led by technology, even as the CBOE Volatility Index (VIX) declined, suggesting the move was not driven by macro data. They attribute the sector rotation to renewed concerns about AI (Artificial intelligence) monetisation after OpenAI’s revenue warning, while stressing that differing signals from other AI firms argue against extrapolating a broad demand slowdown.

AI monetisation worries hit tech

"Equities moved lower yesterday, with most regions in the red and the sector rotation tilting more defensive. What is worth noting, however, is that tech led the decline while the VIX actually fell. In other words, this was not primarily a classic negative macro-data sell-off. "

"It was at least as much about renewed concerns around the AI space, triggered by OpenAI warning on revenue developments."

"That naturally brought one of the key underlying concerns in the AI narrative back to the surface: monetisation. But investors should be careful not to extrapolate too aggressively. What we have heard from OpenAI does not match what we have heard from Anthropic."

"Put differently, this may be less a story about broad-based AI demand disappointment and more about a meaningful shift in users from ChatGPT towards Claude."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)