"As the Wall Street Journal reports, the stock market has been showing marked signs of "fragility," with Nvidia slipping seven percent last week. Despite signs of an end to the ongoing federal shutdown buoying up some excitement, the AI chipmaker continued its plunge this week, sliding another three percent on Tuesday. Meta shares have also fallen almost 17 percent since its quarterly earnings report late last month, despitethe companybeating investors' expectations."
"Adding to the uncertainty is Japanese company SoftBank, which announced this week that it had sold off its Nvidia stake for $5.8 billion - money it promptly used to bankroll different AI bets, including heavy investments in OpenAI. SoftBank's shares slid as much as ten percent on Tuesday, following concerns that SoftBank had to sell in order to meet exploding funding needs."
Tech stocks are falling as AI company valuations outpace lagging revenues, producing market fragility. Nvidia dropped seven percent last week and another three percent this week. Meta shares have fallen almost 17 percent since its quarterly earnings despite beating expectations, and Palantir slid eight percent after reporting better-than-expected results. Investors fear that massive data-center buildouts may not deliver promised returns and worry an AI bubble could push the economy toward recession. SoftBank sold its Nvidia stake for $5.8 billion to fund other AI investments, and its shares fell as much as ten percent while attempting to reassure investors that AI revenues are meaningful.
Read at Futurism
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