Over $2 trillion was wiped out from US tech stocks as the market opened today, continuing a downturn in the AI sector.
In the wake of the US elections that were swept by Democrats in what many are calling the “blue wave,” the AI industry is now home to one of “the fastest wipeouts in US stock market history” as everyone appears to be selling in fear of AI regulations being put in place.
This follows a reported $3.46 trillion market value loss in October across AI stocks, with big losses at companies like Anthropic, OpenAI, Micron, Meta, Broadcom, TSMC, and, of course, our lovely formerly gaming-centric pals at Nvidia.
I’m not a financial expert by any stretch, but I know that all those red tiles seen in the post above are generally a bad thing. Nvidia has reportedly erased “all stock market gains this year” after selling a bulk of its GPUs to data centers to help run generative AI programs.
This could be an overreaction in the market, which is something that happens. But it also could mean the bubble is near popping, if not in the process of popping. Where we go from here, I don’t know, but if it means fewer data centers, then I’m on board, but fears also mount about how this will affect the broader US and world economies.
As of publishing, the Nasdaq is down 5.20 percent, the S&P 500 is down 4.07 percent, and the Dow Jones Industrial Average is down 3.28 percent. But I suppose this is what happens when everyone is encouraged to buy, buy, buy a technology that is just as scary as it is promising. We’ve seen a downturn a few days ago, too, and there may be more to come.
Nvidia is joined by others such as Intel, Tesla, and AMD, which are suffering heavy losses today, so it seems as though this story will continue to develop over the coming days and weeks.
