Caterpillar shows a bullish long-term scenario with strong technicals and business support from AI infrastructure.
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The Stock Market AI Halo Effect Is Dragging These Stocks to Dangerous Levels
Steve MillerMay 10, 2026
The creator discusses how non-tech stocks like Costco, Walmart, Deere, and Caterpillar are being pulled to high valuations by the AI trend, even though they are not AI companies. While acknowledging some AI benefits for efficiency, the analysis suggests these stocks have become overextended and may face corrections, particularly Costco, which is trading at a significantly high PE ratio.
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Tickers discussed in this post
Deere is exceptionally weak technically and overvalued, likely to decline significantly.
Walmart's AI narrative is overblown, with similar cycle and momentum issues as Costco, indicating a potential 15-20% price drop.
Costco's valuation is excessively high due to the AI narrative, suggesting a potential correction.