New Delhi, July 11 -- The spectacular rally in artificial intelligence (AI)-linked stocks may be losing momentum, according to Christopher Wood, Global Head of Equity Strategy at Jefferies. In his latest GREED & Fear newsletter, Wood said investors are increasingly talking about "AI fatigue" as the market begins rotating away from expensive momentum stocks toward cheaper value opportunities, particularly in Asia.

Against this backdrop, Jefferies has increased its preference for markets such as India and China, which have largely missed the AI-driven rally and now offer relatively attractive valuations. While Wood remains constructive on the long-term AI investment cycle, he believes investors should increasingly focus on the beneficiarie...