Nasdaq faces $2 trillion wipeout in October as AI spending fears deepen
More than $2 trillion in market value is set to be wiped from the tech-heavy Nasdaq 100 this month, as Big Tech earnings intensified investor scrutiny of whether the billions being poured into artificial intelligence can generate returns quickly enough. The wipeout would amount to slightly more than SpaceX’s entire market value. The index has fallen over 5.8 percent so far in October as the AI…
A staggering $2 trillion in market value is on the brink of being wiped from the tech-focused Nasdaq 100 this October, as investors grow increasingly concerned about the rapid spending on artificial intelligence. The magnitude of this potential loss is greater than the entire market valuation of SpaceX. As of late October, the index has already experienced a decline of over 5.8 percent, with the AI sector facing turbulence.
Major players Meta Platforms, Alphabet, and Amazon.com have all raised their AI-related spending projections, reflecting a frantic race to bolster AI infrastructure. However, the prospect of even larger AI investments has sparked unease among investors, especially as rising borrowing costs could make debt-financed investments more costly and difficult to justify.
A review of recent earnings reveals that Apple is expected to report next week, while AI pioneer Nvidia is scheduled to release its results in mid-November.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
