AI Stocks Rebound as Goldman Upgrade and Morgan Stanley Pick Lift Sector

AI-related stocks bounced back in the October 19 session after a stretch of nervousness about the sector. IREN, an AI data-center stock, rallied after Goldman Sachs upgraded a key peer, which lifted sentiment across the group. Bitdeer Technologies also rallied after the close the same day. Amazon was the session's biggest mover in the group, surging after Morgan Stanley named it a top pick with a $350 price target, citing Amazon Web Services and AI momentum ahead of the company's October 29 earnings report. Separately, billionaire investor David Tepper's Appaloosa Management has roughly 31% of its portfolio concentrated in two AI stocks, underscoring how much conviction remains among some large holders even as others worry about an AI bubble. What's unresolved is whether this rebound reflects a genuine reset in sentiment or just a bounce ahead of a heavy earnings calendar. Amazon's October 29 report will be an early test of whether the AI-driven optimism behind the Morgan Stanley call holds up against actual numbers.