Recent turmoil on Wall Street has sparked panic among investors heavily involved in AI technologies, with significant stock losses raising concerns over the sustainability of the AI boom. Nvidia experienced a staggering $593 billion loss in market value, marking the largest one-day loss for any company. Additionally, other tech firms connected to AI saw a combined market drop exceeding $1 trillion, spotlighting fears of an impending market correction reminiscent of the dotcom bubble. The breakthrough of Chinese AI model DeepSeek adds to the uncertainty as it garners public attention after launching.
As a Reuters report puts it: "In the last session, Nvidia lost $593 billion in market value - a record one-day loss for any company, while shares of companies in semiconductor, power and infrastructure companies exposed to AI collectively shed more than $1 trillion."
The sure-thing AI boom may be a bust, as awareness dawns among investors that panic sales in AI stocks could lead to a significant market crash.
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