Investors Abandoned These 3 AI Stocks Too Early, Says Jeff Clark

Summary

The headlines belong to AI and semiconductors right now. Chips are soaring, data center buildout stocks are making new highs, and the momentum crowd is firmly in control. But underneath the surface of a market that looks healthy, something odd is happening. The new-low list has been outrunning the new-high list even as the S&P 500 pushes above 7,500. That's not a healthy market. That's a narrow one. Jeff Clark of TradeSmith has seen this setup before. His read: when gains concentrate in a thin slice of the market, the rotation trade is coming. And when it does, the money that rushes out of the hot names has to land somewhere. He thinks it lands in stocks that have already been left behind—and he has three specific names in mind. The Setup: When Enthusiasm Gets Discounted to InfinityThe bull case for AI stocks isn't fiction. Real money is flowing into data centers, chips, and infrastructure. The question Clark is asking is a different one: for how long? Once a data center is built, you don't build another one next door. Memory chips are a cyclical commodity—yet the market has priced them as if the cycle has been suspended permanently. Clark's view is that the market is extrapolating today's spending to infinity, and that a correction is overdue. That doesn't mean the AI trade is over. It means the easy money in the hot names may already be made, and the opportunity is now sitting in the stocks no one is talking about. Figma: A Software Survivor Priced Like a CasualtyFigma Today$22.55 -0.72 (-3.09%) As of 05/20/2026 03:59 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$16.60▼$142.92Price Target$38.63 Figma NYSE: FIG went public at $33 a share, shot to more than $140, and has since retraced nearly all of those gains—spending time near $20 before a recent earnings pop pushed it back above $22. The surface-level read is that software is under pressure from AI, and Figma is getting caught in that tide. Clark's read is almost the ...