US Tech Stocks Hit By Concerns Over Future of AI Boom
(Wednesday August 20, 2025 @04:30AM (msmash)
from the spooking-the-markets dept.)
- Reference: 0178776844
- News link: https://tech.slashdot.org/story/25/08/20/0821214/us-tech-stocks-hit-by-concerns-over-future-of-ai-boom
- Source link:
US tech stocks [1]sold off as warnings that the hype surrounding AI could be overdone hit some of the year's best-performing shares. From a report:
> Nvidia, the chips group that has surged to become the world's first $4tn company on the back of AI, fell 3.5 per cent on Tuesday, while software group Palantir dropped 9.4 per cent and chip designer Arm shed 5 per cent.
>
> The tech-heavy Nasdaq Composite closed down 1.4 per cent, the biggest one-day drop for the index since August 1. The blue-chip S&P 500 fell 0.7 per cent. European and Asian markets largely followed Wall Street lower on Wednesday. [...] Japan's Nikkei 225 index fell 1.5 per cent and South Korea's Kospi slipped 0.6 per cent. Futures price indicated moderate declines when Wall Street opens.
>
> Traders pinned some of the declines in the US [2]on a critical report on Monday authored by a branch of the Massachusetts Institute of Technology. Researchers said "95 per cent of organisations are getting zero return" from their investments in generative AI, the technology that has sent US stocks soaring to record highs in recent months.
[1] https://www.ft.com/content/33914f25-093c-4069-bb16-8626cfc15a51
[2] https://slashdot.org/story/25/08/19/146205/mit-report-95-of-generative-ai-pilots-at-companies-are-failing
> Nvidia, the chips group that has surged to become the world's first $4tn company on the back of AI, fell 3.5 per cent on Tuesday, while software group Palantir dropped 9.4 per cent and chip designer Arm shed 5 per cent.
>
> The tech-heavy Nasdaq Composite closed down 1.4 per cent, the biggest one-day drop for the index since August 1. The blue-chip S&P 500 fell 0.7 per cent. European and Asian markets largely followed Wall Street lower on Wednesday. [...] Japan's Nikkei 225 index fell 1.5 per cent and South Korea's Kospi slipped 0.6 per cent. Futures price indicated moderate declines when Wall Street opens.
>
> Traders pinned some of the declines in the US [2]on a critical report on Monday authored by a branch of the Massachusetts Institute of Technology. Researchers said "95 per cent of organisations are getting zero return" from their investments in generative AI, the technology that has sent US stocks soaring to record highs in recent months.
[1] https://www.ft.com/content/33914f25-093c-4069-bb16-8626cfc15a51
[2] https://slashdot.org/story/25/08/19/146205/mit-report-95-of-generative-ai-pilots-at-companies-are-failing
Woops... (Score:2)
by Fons_de_spons ( 1311177 )
Devil's advocate: "oh no, who would have tought, there are consequences when overselling something. "Ai is going to take over the world!" Now look what you have done. You scared the poor traders. Ah no worries, just replace them with emotionless Ai!"
Maybe investors read "The Economist" (Score:2)
by mkwan ( 2589113 )
Headline: "Palantir might be the most overvalued firm of all time"
[1]https://www.economist.com/fina... [economist.com]
That could explain the 9.4% drop.
[1] https://www.economist.com/finance-and-economics/2025/08/12/palantir-might-be-the-most-overvalued-firm-of-all-time
Next quarters numbers (Score:2)
AI doesn't complain while you flog it for your bonus. The world is truly run by idiots. What no bitcoin? I always have bitcoin with my ai.