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Global Desk With concerns about the AI boom being a bubble waiting for an inevitable bust, tech giants continued to bleed on Wall Street, with the past week wiping off nearly a trillion dollars in valuation of tech companies, Yahoo Finance reported. The top eight AI- linked states in the United States have already lost $1.2 trillion worth of stock valuation since last Friday, setting up the worst week in market performance since POTUS Trump’s Liberation Day tariff declaration in April. As per the University of Michigan Index, the consumer sentiment index has touched a new low of 52.3, down by 6.3 points. With the government shutdown showing no signs of clamping down, confidence in the economy is at a three- year low, as per a report by Yahoo Finance. The November sentiment for the economy stood at 50.3, the worse since July 2022, and down from 53.6 in October.AI stocks fall as market confidence dropsGlobal chip major Nvidia was one of the AI driven companies taking a hit, whose share took a 3 pc dip on Friday, a month after becoming the first publicly traded company to hit $5trillion in valuation. Oracle also saw a dip of 4 pc on the same day. But the closest bleed to a bloodbath was seen by online property portal Rightmove, which saw the worst of the sell- offs on Friday when its shares plunged by gigantic 28 pc just after the plans of its future AI investments were unveiled. As the market closed, it recovered some of the losses, but still remained 12.8 pc down from its early Friday position, Yahoo Finance reported. Live EventsTech giants struggle amid ai bubble fearsMicrosoft shares slipped another 0.5pc, extending a losing streak that now threatens to become the company’s longest in 14 years. Over the past eight trading sessions, the stock has shed 8.6pc of its value — a drop that has wiped roughly $350bn from Microsoft’s market capitalization.Other giants were not insulated from the sell-off either. Major tech names — including Tesla, Amazon, Alphabet, and Apple — also faced steep declines. The broader tech sector reflected this weakness, with the Nasdaq Composite falling 1.8pc on Friday and heading for a weekly loss of 5.5pc, its sharpest setback since April.One of the triggers for the start of the doubt of the ‘AI’ boom was a report by Massachusetts Institute of Technology (MIT), which stated that though more and more AI startups keep cropping up and legacy companies continue to put their money in them, much of even established AI majors were showing zero returns, and were running losses. Though much US market rally has been spun around the tech boom over the past year, the AI companies are now facing the music as more and more analysts cast their doubts over the sustenance of the copious amount of funding for AI. That said, as Yahoo Finance, companies like Nvidia are still hitting big—the recent $100billion deal with ChatGPT being a sign—and ChatGpt has also said that they will commit $1.4tn over the next eight years.FAQQ1. Why are AI company stocks falling?AI company stocks are falling because investors fear the AI boom is a bubble and many AI firms are showing little or no profit, according to MIT and Yahoo Finance reports.Q2. Which major tech companies lost value in the AI market crash?Big tech companies like Nvidia, Microsoft, Tesla, Amazon, Apple, and Alphabet all saw their stock values drop sharply amid AI bubble concerns.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onAI stocksAI bubble crashtech stocks fallNvidia stock dropNASDAQ declinetech stockstock marketoracle (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onAI stocksAI bubble crashtech stocks fallNvidia stock dropNASDAQ declinetech stockstock marketoracle(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless
