$1T Rout Hits Nasdaq 100 over AI Jitters in Worst Day Since 2022
Investors are increasingly skeptical about artificial intelligence, causing the Nasdaq 100 Index to lose $1 trillion in value on July 24, 2024, with major AI-related companies suffering significant declines.
Read original article
Investors have expressed growing skepticism about the potential of artificial intelligence, leading to a significant decline in the Nasdaq 100 Index, which lost $1 trillion in market value. This selloff, which occurred on July 24, 2024, marked the worst day for the index since October 2022, with a drop of over 3%. Major companies associated with AI technology, particularly in the semiconductor sector, were among the hardest hit. Nvidia, Broadcom, and Arm Holdings were notable laggards in the market. The downturn was fueled by concerns regarding the timeline for realizing returns on substantial investments in AI, raising questions about whether the sector is experiencing a bubble. The activity in derivatives markets during the preceding rally had contributed to the heightened valuations of these AI-related stocks. As investor confidence wanes, the future of AI investments remains uncertain, prompting a reevaluation of the sector's growth prospects.
Related
Nvidia slides 13% in three days after briefly becoming most valuable company
Nvidia's stock dropped 13% in three days after being the most valuable company. Other tech firms like Super Micro Computer and Dell also saw stock declines. Despite this, Nvidia's value tripled in a year. Analysts predict high demand for Nvidia's AI chips and see a buying opportunity for investors.
Nvidia and Microsoft leap frogged Apple
Microsoft and Nvidia outpace Apple in market value through AI focus. Concerns on AI sustainability due to energy use. Investors demand real AI results, caution grows. Industry's success tied to energy efficiency and results delivery. Apple trails in AI competition.
AI industry needs to earn $600B per year to pay for hardware spend
The AI industry faces challenges to meet $600 billion annual revenue target to offset massive hardware investments. Concerns arise over profitability gap, urging companies to innovate and create value for sustainability.
AI 'useless,' creating a risky 'fake it till you make it' bubble
Veteran market watcher James Ferguson warns about the AI market bubble, citing risks like false information creation and high energy consumption. He advises caution in investing in AI-related stocks, suggesting value in U.S. small-cap stocks post-bubble burst.
AI has created a 'fake it till you make it' bubble that could end in disaster
A market expert warns of AI hype likened to the dot-com bubble, citing concerns over inflated promises, questionable applications, and energy consumption. Caution advised for investors, with emphasis on traditional strategies.
7 comments… or are they just telling the narrative that will drive the most eyeballs? Because they can’t have a lame headline like “$1T wiped from Nasdaq because there were more sellers than buyers”???
I know its “bloomberg” but we can’t just blindly believe everything they tell us.
- The selloff was triggered by a middle-of-the-road earnings report from Alphabet Inc. late Tuesday that featured a bloated capital expense.
- The declines mostly affect companies strongly linked to the AI push: Nvidia, Microsoft, Apple but also Broadcom, Tesla, etc.
- Some analysts lead by Goldman Sachs have been beating the AI bubble drum for a bit now while multiples remain very high.
[0] https://link.cnbc.com/public/29081083#:~:text=%22If%20they%2....
> “The overarching concern is, where is the ROI on all the AI infrastructure spending?”
I have an opinion which they wouldn't listen to anyways.
Related
Nvidia slides 13% in three days after briefly becoming most valuable company
Nvidia's stock dropped 13% in three days after being the most valuable company. Other tech firms like Super Micro Computer and Dell also saw stock declines. Despite this, Nvidia's value tripled in a year. Analysts predict high demand for Nvidia's AI chips and see a buying opportunity for investors.
Nvidia and Microsoft leap frogged Apple
Microsoft and Nvidia outpace Apple in market value through AI focus. Concerns on AI sustainability due to energy use. Investors demand real AI results, caution grows. Industry's success tied to energy efficiency and results delivery. Apple trails in AI competition.
AI industry needs to earn $600B per year to pay for hardware spend
The AI industry faces challenges to meet $600 billion annual revenue target to offset massive hardware investments. Concerns arise over profitability gap, urging companies to innovate and create value for sustainability.
AI 'useless,' creating a risky 'fake it till you make it' bubble
Veteran market watcher James Ferguson warns about the AI market bubble, citing risks like false information creation and high energy consumption. He advises caution in investing in AI-related stocks, suggesting value in U.S. small-cap stocks post-bubble burst.
AI has created a 'fake it till you make it' bubble that could end in disaster
A market expert warns of AI hype likened to the dot-com bubble, citing concerns over inflated promises, questionable applications, and energy consumption. Caution advised for investors, with emphasis on traditional strategies.