New Delhi, Oct. 13 -- The market's most expensive stocks-including some AI favorites-have experienced unusually sharp valuation declines, raising the stakes for earnings season.

Wall Street is expecting another quarter of strong earnings growth, but Trivariate Research warned that this growth doesn't necessarily translate into stock gains, especially for the most expensive names.

The analysts found that the most expensive stocks on a forward price-to-earnings basis at the end of the second quarter saw multiple contractions roughly 100 times as large as those of the cheapest names. AI trade favorites like AMD, Marvell, Corning, and Bloom Energy were part of this group.

"Only 5.3% of the time since 1999 have we seen more multiple contrac...