AI Stock Sell-Off Rattles Markets as Sector Loses $820 Billion
The artificial intelligence sector faced a brutal reckoning last week as major tech stocks plummeted. Nvidia, AMD, Oracle, and Super Micro Computer led the decline, with losses ranging from 9.6% to 25%. The sell-off erased $820 billion in market value, spreading to Broadcom, Meta Platforms, and Amazon despite their strong fundamentals.
Goldman Sachs offered a contrarian view, asserting the AI sector isn't yet in bubble territory. The bank's regional head Brittany Boals Moeller told Fortune that AI stocks retain significant growth potential, even as companies like Amazon plan $100 billion capital expenditures in the space.