AI Stocks Poised to Defy September Selloff

The month of September is often brutal for stocks, with the S&P 500 averaging a 1.2% decline since 1928.

This year's rotation into energy, industrials, materials, staples, and small caps may have already pushed out weak money from AI megacap stocks.

The setup is different this time, as hyperscalers such as Alphabet's Google Cloud, Microsoft, and Amazon Web Services have seen strong growth in the past year, with demand exceeding supply.

This month's earnings reports for Broadcom, Oracle, Adobe, and Micron Technology may serve as a reentry trigger rather than a risk event, given the strong fundamentals and improving capital expenditure estimates.