Some of the world’s biggest technology companies have seen their shares plummet in recent weeks, raising questions about whether the artificial intelligence boom is turning into a bubble. The sharpest falls have been in Asia, with shares in Korean chip makers SK Hynix and Samsung down 46% and 35% respectively over the last month.
Investors are growing concerned that the recent explosion in demand for chips that power AI systems may be unsustainable. Yet these same shares remain up threefold and fivefold respectively over the last year, leading many analysts to conclude that profit-taking after massive gains was inevitable.
Concerns have spilled over into major US companies as well. Shares in Google and Tesla plunged briefly before recovering last week after both firms pledged to spend billions more on AI despite generating losses from the technology so far.
The tech-heavy Nasdaq ended Wednesday’s trading about 9% below its June record high, driven down in part by worries over heavy AI spending. With Meta, Microsoft and Amazon reporting financial results this week, investors are closely scrutinizing how much these companies are betting on AI.
Author: Pulse Of Nations Wire Desk
