Summary
Shares of technology companies fell due to concerns that the high valuations of AI-related stocks might not be sustainable. Major markets in Asia and the US experienced significant declines as investors became cautious about over-investment in AI. Companies like SoftBank, Nvidia, and Amazon saw their stock prices drop amid these fears.
Key Facts
- Tech shares fell over concerns of an "AI bubble" with high stock valuations.
- Major Asian markets, including Japan's, saw steep declines; Japan's exchange fell over 3%.
- SoftBank, heavily invested in AI, experienced a more than 10% drop in its stock.
- In the US, the trader known for inspiring "The Big Short" bet $1.1 billion on declines in Nvidia and Palantir stock.
- Amazon's share price dropped by 1.84% after reaching an all-time high on Monday.
- Nvidia's stock fell close to 4%, even after being the first company valued at $5 trillion.
- South Korea's Samsung and TSMC, involved in AI component production, also saw stock decreases.
- Analysts believe tech stock corrections will continue as investors reassess high valuations in the AI sector.
