U.S. tech stocks plunge
Nvidia’s market value evaporated by nearly $600 billion in a single day, and the total market value of US listed technology companies shrank by about $1 trillion in a single day… The recent sharp drop in the US stock market, which has hit new highs, caught investors immersed in the bull market mentality off guard. However, the valuation return of US technology giants has long been expected by some market participants. In just a few days, investor sentiment in US artificial intelligence-related companies has experienced a “roller coaster”. On the 21st, Japan’s SoftBank Group, the US Open Artificial Intelligence Research Center (OpenAI) and the US Oracle Corporation announced an investment of $500 billion in the development of artificial intelligence technology, injecting a “boost” into investors and stimulating the S&P 500 index to hit a new high for three consecutive trading days. On the 27th, news that Chinese start-ups Deep Quest had made important progress in the field of artificial intelligence began to ferment in the industry and even in the media, causing the market to question the rationality and prospects of building a large language model of artificial intelligence with huge investments, and some investors began to sell heavyweight technology stocks that had previously benefited from the investment boom in artificial intelligence. On this day, the stock price of Nvidia, which ranks first in market value, plummeted by 16.97%, and its market value evaporated by nearly $600 billion, setting a record for the single-day market value loss of US listed companies. Broadcom’s stock price fell by 17.4%, while TSMC and Oracle’s stock prices both fell by more than 13%. While exclaiming surprise, many investors have greater doubts about the huge investment plan in artificial intelligence promoted by the United States, believing that there is a suspicion of over-investment. Some commentators believe that market practice has proved that it is possible to develop artificial intelligence models with lower costs and equally powerful performance, which will fundamentally change the investment logic of the AI industry chain.
