CNBC's experts on whether the AI trade is ending and what investors should do next

Key Points:

• Tech stocks, particularly those tied to AI and data centers, faced a sharp selloff following Democrats' midterm election success, raising concerns about potential restrictions on data center expansion that could hamper future growth.
• Investors are reevaluating the previously forecasted $1.2 trillion capital expenditure for AI infrastructure next year, with some experts suggesting this may signal a fundamental shift or slowdown in the AI trade.
• The Nasdaq Composite fell 5%, entering correction territory, while semiconductor and AI-focused ETFs also suffered significant declines, reflecting broader market worries about the sustainability of AI-driven growth.
• Despite the downturn, some analysts see the selloff as a buying opportunity, emphasizing the scarcity and value of existing compute capacity and noting selective strength in certain tech stocks like Motorola Solutions and Sony.
• Market strategists remain cautiously optimistic, viewing the recent pullback as a potential pause within a longer-term uptrend rather than a definitive market collapse, and anticipate possible short-term rebounds.