"Artificial intelligence stocks have been on a tear in recent months, driven in part by the sector's growing role in the global economy. However, a new challenge is emerging on the horizon: a potential deluge of AI-related equity supply. As companies in the field continue to go public and existing players issue new shares, the influx of fresh stock could remove a key source of support for prices, potentially leading to a downturn in the market. Analysts warn that the increased supply could outpace demand, leading to a correction in the sector's hot streak."
A potential deluge of AI-related equity supply removes a source of upthrust for prices
