Home · Business · Oct 30 archive
Tech Stocks Plunge Amid AI Spending Worries
· Confirmed
In Short: The plunge in tech stocks was fueled by growing concerns over the hundreds of billions of dollars that firms are investing in artificial intelligence (AI).
Tech stocks continued their steep decline on Friday, with major tech companies like Intel and Google owner Alphabet seeing significant losses. Intel's stock plummeted by 28%, while Alphabet's stock price fell another 1.4% following a 12% drop on Thursday.
The plunge in tech stocks was fueled by growing concerns over the hundreds of billions of dollars that firms are investing in artificial intelligence (AI). Major tech companies, including Meta, Alphabet, Oracle, Amazon, and Microsoft, have committed to spending $800 billion collectively by 2026.
Reddit's stock also took a hit, dropping by 29% after the social media platform reported weaker-than-expected daily user figures and warned that Google's AI-driven search was impacting referral traffic.
The tech-heavy Nasdaq Composite index dropped 2.9% on the last trading session of the month, while the broader S&P 500 index shed 1.8%, marking the worst one-day performance since June for both indices.
AI chip stocks broadly fell, with concerns over valuations and financing leading to substantial monthly declines in Bitcoin and Ethereum, impacting crypto-related stocks.
In Taiwan, major AI-related stocks led the market's plunge, with shares falling by just under 2.5% on Friday, following heavy losses in American tech markets.
Background
US tech stocks fell sharply on Thursday as concerns over massive AI investments intensified.
Tech stocks lost over $1 trillion in value amid growing concerns over the financial returns of artificial intelligence investments.
What's confirmed
- Tech stocks continued their steep decline on Friday, with major tech companies like Intel and Google owner Alphabet seeing significant losses. Intel's stock plummeted by 28%, while Alphabet's stock price fell another 1.4% following a 12% drop on Thursday.
- The plunge in tech stocks was fueled by growing concerns over the hundreds of billions of dollars that firms are investing in artificial intelligence (AI). Major tech companies, including Meta, Alphabet, Oracle, Amazon, and Microsoft, have committed to spending $800 billion collectively by 2026.
- Reddit's stock also took a hit, dropping by 29% after the social media platform reported weaker-than-expected daily user figures and warned that Google's AI-driven search was impacting referral traffic.
- The tech-heavy Nasdaq Composite index dropped 2.9% on the last trading session of the month, while the broader S&P 500 index shed 1.8%, marking the worst one-day performance since June for both indices.
- AI chip stocks broadly fell, with concerns over valuations and financing leading to substantial monthly declines in Bitcoin and Ethereum, impacting crypto-related stocks.
- In Taiwan, major AI-related stocks led the market's plunge, with shares falling by just under 2.5% on Friday, following heavy losses in American tech markets.
What's still developing
- While tech firms are spending big on AI, their earnings are not always meeting analysts' expectations, spooking investors and creating fears of an AI bubble.
- Among other semiconductor stocks, smartphone IC designer MediaTek Inc. shed 3.21 percent to end at NT$3,915.00, and IC packaging and testing firm ASE Technology Holding Co. closed down 2.20 percent at NT$668.00.
- And it shows how even as worries about some A.I. companies have intensified, money has not fled the stock market but is instead being redeployed within it.
- AI-related stocks account for 42% of China’s market capitalisation and 57% of turnover across mainland-listed A-shares and Hong Kong-listed H-shares, according to Goldman Sachs, leaving a large share of the market exposed to the downturn.
- Get to know where the market bulls are investing to identify the right stocks.
- The comments, among the first by airline chiefs since the attack, highlight the industry’s struggle to address safety and security concerns after an incident that caused the jet to plunge 16,000 feet in 30 seconds.
- Huang stated at a Bloomberg event in Stockholm, “CoreWeave’s strength is improving every day,” and expressed optimism regarding the company’s cost of capital.
- Home » Trending » CoreWeave Stock Plunges 12% Amid Funding Concerns Despite Analyst Optimism CoreWeave’s stock experienced a significant decline of 12% on October 16, with projections indicating a 25% drop for the week.
Sources
- BBClink
- Focus Taiwanlink
- Tradingkeylink
- Thevibeslink
- Economictimeslink
- Profitlink
- Arabnewslink
- Warpbeatlink
- Newslink
- Mininglink
- WarpBeat — background on US Tech Stocks Plunge Amid AI Spending Worries link
- WarpBeat — background on Tech stocks wipe out $1 trillion in value as concerns deepen about the AI boom link
- CBS Evening News — video link