US tech stocks gave back some of their gains as investors weighed the future of AI. Nvidia, which has consistently beaten earnings expectations, saw a pullback on the day as did Arm and Palantir. The Nasdaq slid 1.4% while the S&P 500 shed 0.7%. The trigger was an MIT report claiming that 95% of firms investing in generative AI are seeing no returns, fuelling investors to assess positioning. Still, many of these tech giants remain among the year's strongest performers, and with AI adoption at an early stage, the potential for substantial long-term upside remains. Like all long-term trends, returns are never linear and TAM remain bullish that these valuations are justified by the incredible potential of artificial intelligence.