Ed Yardeni said the market is already showing signs of “AI fatigue,” prompting a more cautious stance on the AI trade. He said it is difficult to identify the eventual winners and losers in the sector and advised against directly chasing individual AI stocks. Yardeni said investors seeking AI exposure may be better served through diversified vehicles such as Nasdaq-100 index funds. He added that he is more bullish on sectors benefiting from AI adoption, including financials, healthcare, industrials and energy, rather than on AI technology companies alone. He also said current market conditions differ from the dot-com bubble, which he described as being driven by FOMO. Yardeni said the market is now supported by “fabulous earnings momentum,” with the semiconductor sector trading at about 17 times earnings and the overall market at about 20 times, both below 1999 levels. He said the “Roaring 2020s” still has about an 80% chance of continuing as long as the U.S. economy avoids recession.