Investors are growing skeptical about the profitability of artificial intelligence investments, leading to a sharp decline in tech stocks. The Nasdaq Composite dropped 628 points, or 2.4%, to 25,537, while the Dow Jones Industrial Average slipped 305 points, or 0.6%, to 51,407. Companies like Nvidia, Micron Technology, Broadcom, and Lam Research led the market lower.
Several tech giants, including Alphabet, Amazon, and Microsoft, are heavily investing in AI infrastructure, but investors are questioning whether these investments will generate profits. The sell-off in tech stocks has also affected exchange-traded funds that invest heavily in tech stocks.
In other AI-related news, AI memory startup Engram raised $98 million to improve model efficiency and curb skyrocketing costs. The National Security Agency lost access to a powerful AI model developed by Anthropic amid export controls. Meanwhile, Marvell Technology debuted its 102.4 Tbps Teralynx T100 AI data center switch and was added to the S&P 500 Equal Weighted Index.
Standard Chartered predicts that internet stocks will be the next area of the AI cycle. The big tech investment cycle is shifting, with Chevron and Microsoft partnering to develop new technologies that harness the power of the grid to support AI processing.
Key Takeaways
["Investors doubt AI investments' profitability, causing tech stocks to tumble.", 'Nasdaq Composite dropped 628 points, or 2.4%, to 25,537.', 'Alphabet, Amazon, and Microsoft are spending big on AI infrastructure.', 'AI memory startup Engram raised $98 million to improve model efficiency.', "National Security Agency lost access to Anthropic's powerful AI model.", 'Marvell Technology debuted 102.4 Tbps Teralynx T100 AI data center switch.', 'Standard Chartered: internet stocks will be the next area of the AI cycle.', 'Chevron and Microsoft partner to develop grid-based AI processing technologies.', 'The sell-off in tech stocks affects exchange-traded funds.', 'Investors skeptical about AI-related efforts, impacting SpaceX stock.']Tech Stocks Tumble as Investors Doubt AI Profits
Technology stocks fell sharply as investors questioned whether artificial intelligence investments will generate profits. The Nasdaq Composite dropped 628 points, or 2.4%, to 25,537. The Dow Jones Industrial Average slipped 305 points, or 0.6%, to 51,407, and the S&P 500 fell 1.6%.
Investors Get Nervous as AI Stocks Tumble
Investors are questioning whether AI investments will generate profits. Several companies that make chips for data centers led the market lower. Alphabet, Amazon, and Microsoft are spending big on AI infrastructure.
AI Stocks Slide as Investors Doubt Future Profits
AI stocks fell sharply as investors doubted future profits. Companies like Nvidia, Micron Technology, Broadcom, and Lam Research led the market lower. Alphabet and Amazon are spending big on AI investments.
Investors Question AI Stock Profits
Investors are questioning whether AI stocks will generate profits. The sell-off in tech stocks took a bite out of exchange-traded funds that invest heavily in tech stocks.
AI Stock Sell-Off Sparks Investor Doubts
Investors are doubting whether AI investments will generate profits. Sandisk and Marvell stocks sank 12.2% and 8.1%, respectively. The sell-off also affected exchange-traded funds.
How AI Stocks Impact Trump's Economy
The AI-driven stock market rally is sputtering, and this could impact Trump's economy. The president has staked his economic agenda on the advancement of large AI businesses.
Tech Sell-Off Sparks Investor Concerns
A broad technology sell-off extended into a second trading day as investors questioned whether AI spending will produce outsized profits.
Investors Sell Tech Stocks Amid AI Doubts
Investors are selling tech stocks as they doubt AI profits. The Nasdaq Composite fell 628 points, or 2.4%, to 25,537.
SpaceX Stock Dips Amid AI Sell-Off
SpaceX stock dipped below its market opening price as AI stocks faced sell-offs. Investors are growing skeptical of AI-related efforts.
AI Chipmakers Dominate Emerging Markets
Three AI-focused chipmakers, TSMC, Samsung, and SK Hynix, dominate emerging-market indices, raising concentration risk for passive investors.
Internet Stocks Will Be Next AI Cycle
Standard Chartered says internet stocks will be the next area of the AI cycle.
Marvell's S&P 500 Debut and New AI Switch
Marvell Technology was added to the S&P 500 Equal Weighted Index and debuted its 102.4 Tbps Teralynx T100 AI data center switch.
Judge Allows Search Warrant for AI Chatbot Records
A federal judge allowed a search warrant targeting an executive's AI chatbot records.
NSA Lost Access to Powerful AI Model
The National Security Agency lost access to a powerful AI model developed by Anthropic amid export controls.
Big Tech Investment Cycle Shifts
The big tech investment cycle is shifting, with Chevron and Microsoft partnering to develop new technologies that harness the power of the grid to support AI processing.
AI Memory Startup Raises $98 Million
AI memory startup Engram raised $98 million to improve model efficiency and curb skyrocketing costs.
Sources
- AI Stock Slump Raises the Question if Investors Are Just Taking Profits or Getting Very Nervous
- AI stock slump raises the question if investors are just taking profits or getting very nervous
- The big jump in AI stocks could be making investors nervous
- AI stock slump raises the question if investors are just taking profits or getting very nervous
- AI stock slump raises the question if investors are just taking profits or getting very nervous
- How the tech selloff could undercut the engine of Trump’s economy
- Tech stocks tumble for a second day. Here's what is behind the selloff.
- SpaceX dips below market opening as AI stocks face sell-offs
- AI Chipmakers Dominate Emerging-Market Indices, Raising Risk
- Watch Internet Stocks Will Be Next Area of AI Cycle, Standard Chartered Says
- Marvell’s S&P 500 Debut And New AI Switch Might Change The Case For Investing In MRVL
- Commvault Gains From AI, Identity Security and Hybrid Cloud Demand
- Judge allows US search warrant targeting executive's AI chatbot records
- N.S.A. Lost Access to Powerful A.I. Model Amid Anthropic Dispute
- The Big Tech Investment Cycle is Shifting, and Chevron Just Wrote the Blueprint for the AI Power Trade.
- AI memory startup focused on cutting token costs raises $98 million
Comments
Please log in to post a comment.