The Business Times Podcasts S2E33: AI euphoria: reality check hits the software market
Feb 27, 2026
Oriano Lizza, sales trader at CMC Markets who provides market commentary and trading insights. He discusses whether AI euphoria is due for a reality check and the software sell-off. He contrasts Asia’s chip-led rally and Japan’s inflation risks. He also examines tariff clarity and the unlikely scenario of gold surging to US$6,300.
AI Snips
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Transcript
Episode notes
Market Is Resetting After AI Euphoria
- Markets are adjusting to AI-driven change after a rapid run-up and recent sell-off labelled “software-mageddon.”
- Oriano Lizza says investors should watch for tested AI companies with healthy balance sheets rather than chasing faddish entrants taking on debt.
Prefer Proven AI Firms With Strong Balance Sheets
- Do prioritise companies with proven AI longevity and strong balance sheets instead of new, highly leveraged entrants.
- Oriano warns rising interest rates will squeeze debt-heavy AI plays that scale quickly without profits.
Tech Valuations Outrun Fundamentals
- Overstretched economic expectations have inflated tech valuations and set up a needed market correction.
- Oriano likens the cycle to parabolic rallies that later taper as fundamentals and earnings are reassessed.