AI sell-off not over, NVIDIA could be 'next shoe to drop': Strategist

Market Sentiment and Direction - Asian markets opened higher following a significant selloff in tech stocks last week, raising questions about whether this is a dead cat bounce or a genuine stabilization [1] - The fundamental thesis regarding tech investments is being reassessed, with notable investors liquidating their holdings, indicating a shift in market sentiment [2] AI Sector Analysis - The AI selloff is perceived to be just beginning, with expectations of further declines in the market, potentially around 10% more [3][4] - Companies like Oracle and Meta have experienced damage, while Nvidia remains relatively stable, though it may face declines as focus shifts to OpenAI [4][5] - OpenAI's ambitious plans to spend $1.4 trillion in capital expenditures are under scrutiny, as the company struggles to generate sufficient revenue to support such spending [5][6] Competitive Landscape - The AI industry is highly competitive, and there are concerns about the profitability of companies like OpenAI, especially in light of recent internal communications indicating challenges ahead [6][7] - The release of Gemini 3.0 has raised questions about OpenAI's business model and the return on investment for the significant capital expenditures in the sector [7]