Positive impactSector
Value investors retool their models to keep up with the AI stock market
CNBC-TV18 1 hr ago·24 Sept 2026, 1:03 am
Value investing is facing a new challenge as artificial intelligence stocks surge, pushing traditional valuation metrics like price-to-earnings ratios to record highs. Many classic value strategies have struggled to keep pace, as investors chase the hottest growth names. However, some funds are adapting by retooling their models. Instead of relying solely on standard ratios, these investors are using more flexible definitions of value. This approach looks for companies that are undervalued based on future potential or cash flow, rather than just current earnings. This shift allows them to identify hidden gems that might be overlooked by more rigid strategies.
This evolution matters because it shows that the definition of 'value' is changing in a tech-driven market. For investors, it highlights the importance of staying flexible and not getting stuck in outdated rules. While growth stocks have been the stars recently, this trend suggests that a more dynamic approach to valuation could offer opportunities. Investors should watch how these funds perform and whether this blended strategy can continue to find bargains in a market that often rewards speed over patience.
Key takeaways
- Category: Sector.
- AI reads the tone as positive (potentially bullish) for the stock.
Why it matters
A routine update. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
