After recently announcing plans to invest up to $660 billion in the artificial intelligence (AI) sector this year, several major U.S. tech giants faced a sharp decline in the stock market. Investors are concerned that the scale of related capital expenditure is surpassing the profit potential of the new technologies themselves. The market volatility also put the stock price of U.S. chip manufacturer NVIDIA to the test. NVIDIA is expected to release its earnings report later this month. Drew Dixon, founder of Albert Bridge Capital, said that previously, market excitement could be sparked solely by capital expenditure, but now people want to see that capital spending translate into actual revenue growth. (Xinhua)
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Tech giants' massive AI investments "scare" U.S. stocks
After recently announcing plans to invest up to $660 billion in the artificial intelligence (AI) sector this year, several major U.S. tech giants faced a sharp decline in the stock market. Investors are concerned that the scale of related capital expenditure is surpassing the profit potential of the new technologies themselves. The market volatility also put the stock price of U.S. chip manufacturer NVIDIA to the test. NVIDIA is expected to release its earnings report later this month. Drew Dixon, founder of Albert Bridge Capital, said that previously, market excitement could be sparked solely by capital expenditure, but now people want to see that capital spending translate into actual revenue growth. (Xinhua)