Nvidia, Micron, and other AI stocks take a dive after elections
No loud popping sounds yet, but an AI market correction appears to be underway.
The AI stock bubble experienced a notable correction following the US midterms, with tech giants like Nvidia and Micron shedding value. The S&P 500, a key index tracking major companies invested in AI, saw a decline of approximately 3.9% by early afternoon. Nvidia's shares, in particular, traded below their year-start levels, while Micron faced a substantial 15% drop.
The downturn is attributed to Democratic electoral victories and nationwide data center expansion curbs, leading to skepticism about the projected $1.2 trillion in AI-related capital expenditure for the upcoming year. One Point BFG Wealth Partners' chief investment officer, Peter Boockvar, highlighted this skepticism, suggesting that the anticipated AI investment surge may not materialize as expected.
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