$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 articleInvestors 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.
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… 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.
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