US EditionAI Is About to Face an Enormous Test. The Market Is Already Nervous
6 Articles
6 Articles
AI is about to face an enormous test. The market is already nervous
Growing concerns about an artificial intelligence bubble have, in large part, caused the stock market’s recent bout of volatility. So the AI industry will face an enormous test when Nvidia, the world’s most valuable company and backbone of the AI boom, reports earnings after the bell on Wednesday.
Major tech companies are investing billions in the development of artificial intelligence (AI), but so far, this has yielded little to no profit. Experts are therefore deeply concerned: is a financial bubble developing around AI, and what will happen if it bursts? Meanwhile, the results of chip developer Nvidia are also being closely watched, as they could prove decisive.
These actors are surfing the AI wave by offering strong cloud in Nvidia graphics processors at ultra-competitive rates, but their weaknesses are almost sure to promise consolidation.
Nvidia, whose market capitalization exceeded $5 trillion by the end of October — becoming the first company to pass this symbolic bar — represents about 8% of the S&P500, the index of the 500 largest American companies side by side on the stock exchange, which has lost more than 3% over the last three weeks, after breaking its record 36 times this year 1. Bridgewater and Coatue Management, both of which hold several million shares of Nvidia, red…
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