Is the AI bubble bursting, or are investors just nervous about the US midterm elections?
For three weeks, tech stock prices have been falling. Here's why it suggests that things will soon start looking up again.
Tech stocks have been declining for three weeks, with the Nasdaq-100 Index dropping 3.5% on Friday. Intel's stock plummeted 29% after the chipmaker forecast lower earnings for the current quarter than expected. Google's market value decreased by $500 billion in one trading day as the company's investments in AI infrastructure have yet to generate sufficient cash flows.
Despite concerns that tech companies' AI investments may not pay off quickly, the author believes the market uncertainty is primarily linked to the upcoming US midterm elections and expects a rebound in tech stocks soon.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
