Protecting Profits in the AI Data Center Trade

The AI Boom is entering its 'Show Me' phase, according to Robert Rapier. This means that investors are becoming more selective about which companies deserve credit for AI data center demand and which ones are merely spending huge sums in hopes of capturing it.

Understanding this distinction may be the key to protecting your investment portfolio from taking a big hit later this year. With equity valuations high and the global economy laboring under the weight of high energy prices, it wouldn't take much bad news to send some tech stocks reeling.

A recent case in point is International Business Machines (NYSE: IBM), which saw its share price fall 25 percent in a single day when it disappointed Wall Street with its Q2 results last month. Until then, IBM was on a roll due to its hybrid cloud AI data center hardware capabilities.