Tickmill Group analyst Patrick Munnelly said the AI-driven equity rally is
growing more fragile. Leveraged retail exposure, crowded semiconductor longs and
fragile sentiment around memory-chip demand leave markets highly vulnerable to
negative news. Heavy losses in Asian equities on Friday show markets can swing
from comfort to fragility very quickly. The oil-related buffer against inflation
has disappeared and renewed security risks in the Strait of Hormuz are
resurfacing. Munnelly said this does not necessarily mean AI trading is broken,
but crowded positioning could prevent even fundamentally positive news from
lifting the market when sentiment turns.
