Meta, Alphabet and Microsoft Rise While Nvidia Falls After Three AI Chiefs Call For Slowing Down Frontier Models
Three prominent AI leaders - Amodei, Altman, and Musk - publicly advocated for a slowdown in the development of advanced AI models, leading to a notable shift in stock market trends. Meta Platforms experienced a 7% increase, while Nvidia saw an 8% decline, reflecting investors' response to the call for cautious AI development. Microsoft remained stable, and ASML and SoftBank both saw 10% drops, as traders moved from AI hardware firms to enterprise software companies.
With Federal Reserve rate hike expectations at 85% and the 10-year yield near 5%, the market shift hinges on whether hyperscalers adjust their substantial capital expenditure plans.
The market reaction was evident in stock movements: Meta Platforms rose 7.12% to $660.71, Alphabet gained 2.09% to $GOOGL, and Microsoft held steady at $499.83. Conversely, Nvidia fell 8.38% to $210.82, and Amazon dropped 1.74%. The decline was primarily concentrated in AI buildout companies, while enterprise software names like Workday, Adobe, Intuit, and Autodesk saw gains.
Analysts at 24/7 Wall St. highlighted the importance of the Federal Reserve's decision on Wednesday and the potential adjustments to hyperscaler capex plans in shaping future market movements.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
