US stocks continued moving toward record highs this week even as bond yields and oil prices stayed elevated.

The market is still being supported by AI enthusiasm, and another strong quarter from Nvidia reminded investors why the theme continues to dominate 2026.

But underneath the rally, another conversation is starting to grow: Is it time to move from growth into value?

AI Boom Still Drives the Market

The AI infrastructure cycle remains the biggest force behind equities. What started with chip demand has expanded into a much larger ecosystem involving: Data centers, Cloud infrastructure, Power demand, Networking equipment, AI software

The trend has produced some extraordinary market moves over the last three years, with several AI-linked companies posting massive revenue growth and sharp valuation expansion.

At the same time, the market leadership has become increasingly concentrated.

Value Stocks Return to the Conversation

With many growth names trading near highs, analysts are beginning to look elsewhere. Attention is moving toward:

  • Undervalued companies that beat Q1 earnings
  • Value stocks left behind during the AI rally
  • Businesses with stronger cash flow profiles

Morningstar highlighted seven undervalued companies that exceeded both earnings and revenue expectations, including software names and a major social platform.

The message is not that AI is ending. It is that investors may begin broadening exposure.

SpaceX and IPO Markets Stay in Focus

Another major theme this week was the long-awaited IPO filing from SpaceX. Investors are now studying:

  • Revenue sources
  • Financial structure
  • xAI exposure
  • Potential valuation upside

The filing also renewed attention around how much value the AI and space ecosystem could create outside public markets.

Related: SpaceX and Google Are in Talks to Launch Data Centers in Orbit

Moat Changes and Market Rotation Matter More Now

Markets are also becoming more selective. Recent updates included:

  • Three moat-rating changes
  • Two downgrades
  • One upgrade

These changes matter because investors are increasingly asking not only which companies grow, but also which companies can protect that growth long term.

Markets are still moving with AI. But the next stage of the rally may look different. Growth remains strong. Value is returnin, and investors are beginning to rebalance instead of simply chasing momentum.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.