Fidelity’s Jurrien Timmer thinks the AI trade may have run its course. Maybe not a clean ending, but he argues the bull market now needs more support from the broader stock market. The stock market would have to carry more weight if the trend is to continue. That is a shift from the last couple of years, when AI names did much of the lifting.
The AI bubble question
The AI funding cycle looks closer to a logical conclusion. Large checks to companies like OpenAI and Anthropic could not keep growing forever. Anthropic’s IPO roadshow began on Nov. 10. Existing stockholders are offering part of their holdings alongside new shares. That does not prove the trade is finished, but it does show early investors may want to take some money off the table. Timmer’s point is less about one company and more about market breadth. The equal-weighted S&P 500 looks healthier, yet in a top-heavy market that may not be enough to keep the index rising.
Crypto could get a look, but not automatically
Crypto might benefit if money rotates out of AI. It is not guaranteed. Risk tolerance and available funds both look thin. The barrier between Bitcoin and any AI rotation remains volatility and the safety of crypto markets. The digital asset industry is not the same as it was before AI became the dominant story. There are more risks now: cybersecurity, questions about Bitcoin’s quantum resistance, and other issues that can keep fresh money away. I think this matters because investors who are leaving one crowded trade often want calm, liquid places to park cash. Crypto is many things, but calm is not usually one of them.
What would confirm a shift
Bitcoin would be the main asset to benefit if a transition happens. Still, confirmation would require specific signs: higher highs for Bitcoin and larger-cap altcoins, plus steady inflows into institutional products like ETFs. Without those signals, the end of the AI trade and a fast move into crypto looks unlikely. Timmer’s view is a warning, perhaps, not a forecast. The AI trade may be tired, but tired trades do not always hand their money to crypto next. For now, the market needs evidence before it needs a new narrative.
