American technology stocks fell sharply over the weekend due to concerns about the overheating pace of AI investment and disappointing profits from the semiconductor sector. The Nasdaq Composite lost 1.2%, while the S&P 500 dropped 0.6% – the steepest decline in August, although it still rose 1.9% for the month.
Marvell Technology fell nearly 19% as data center revenue missed expectations, leading Bank of America to downgrade its recommendation. Nvidia also dropped 3.3% on the day and lost 2.1% for the week, due to uncertainty from the restrictions on AI chip exports to China. The Philadelphia Semiconductor Index fell to its lowest level since mid-April.
Meanwhile, trade tensions and competition from Cambricon – the Chinese AI chip manufacturer that achieved record profits – continue to put pressure on Nvidia. Super Micro Computer fell 5.5% due to accounting troubles. Bitcoin also did not escape the wave of selling, dropping below 108,000 USD, down nearly 7% for the week.
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American technology stocks are under pressure as AI growth shows signs of slowing down.
American technology stocks fell sharply over the weekend due to concerns about the overheating pace of AI investment and disappointing profits from the semiconductor sector. The Nasdaq Composite lost 1.2%, while the S&P 500 dropped 0.6% – the steepest decline in August, although it still rose 1.9% for the month.
Marvell Technology fell nearly 19% as data center revenue missed expectations, leading Bank of America to downgrade its recommendation. Nvidia also dropped 3.3% on the day and lost 2.1% for the week, due to uncertainty from the restrictions on AI chip exports to China. The Philadelphia Semiconductor Index fell to its lowest level since mid-April.
Meanwhile, trade tensions and competition from Cambricon – the Chinese AI chip manufacturer that achieved record profits – continue to put pressure on Nvidia. Super Micro Computer fell 5.5% due to accounting troubles. Bitcoin also did not escape the wave of selling, dropping below 108,000 USD, down nearly 7% for the week.