{"id":4652,"date":"2025-08-21T15:01:42","date_gmt":"2025-08-21T15:01:42","guid":{"rendered":"https:\/\/musictechohio.online\/site\/stock-market-tech-ai-jitters\/"},"modified":"2025-08-21T15:01:42","modified_gmt":"2025-08-21T15:01:42","slug":"stock-market-tech-ai-jitters","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/stock-market-tech-ai-jitters\/","title":{"rendered":"Wall Street Appears to Be Having Serious Doubts About AI"},"content":{"rendered":"
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The amount of cash backing artificial intelligence right now is so high that it’s almost meaningless to the average person.<\/p>\n

There are now almost 500 AI unicorns<\/a> \u2014 companies valued at over $1 billion \u2014 worth a total of roughly $2.7 trillion, enough to do some serious damage<\/a> to the economy if things don’t go well.<\/p>\n

But for investors, that cash represents a dream: that AI will someday do more than generate video essays<\/a> explaining that Nubian giants built the pyramids, and become a major financial driver.<\/p>\n

Whether that will ultimately come to pass is anyone’s guess. But for the first time since US president Donald Trump’s bizarre tariff scramble<\/a> back in April, Wall Street is clearly getting the jitters.<\/p>\n

Over the past five days, the Nasdaq \u2014 a tech-heavy stock exchange \u2014 tumbled by nearly three percent<\/a>, a trajectory that wiped out weeks of big tech gains.<\/p>\n

Leading the charge was the chip giant Nvidia \u2014 the shovel company to the AI gold rush<\/a> \u2014\u00a0from $182 per share on Tuesday to a low of $169 the following day. Microsoft, a major backer of OpenAI, likewise dove from a high of $525 per share on Friday to around $505 when the markets closed on Wednesday. Other Nasdaq world-beaters like Apple, Amazon, and Alphabet fell as well.<\/p>\n

The S&P 500 also sank for the fourth day in a row, shedding some 1.5 percent of its composite. That was led by a hard hit to AI spying company Palantir<\/a>, which has slumped some 9 percent<\/a> over the past five days of trading, after hitting a record high stock valuation last week.<\/p>\n

Altogether, the drama represents\u00a0losses of over $1 trillion in the stock market \u2014 one of the first notable drops in confidence from investors who have so far backed the tech industry’s AI plans to the hilt.<\/p>\n

The question now is whether this is\u00a0a sign that the AI bubble is starting to burst, as\u00a0some have been predicting for months<\/a>, or if some investors are simply cashing in on tech stocks that have experienced unprecedented growth<\/a> in 2025. (Investors may not be quite sure themselves; the needle on CNN<\/em>‘s iconic “Fear & Greed” index<\/a> is currently hovering right in the middle between the two powerful financial sentiments.)<\/p>\n

A CNBC\u00a0<\/em>analysis<\/a>, for example, speculates that “investors could just be taking profit and enjoying the summer.”<\/p>\n

One narrative that may be driving some of the chill: a bombshell MIT analysis of AI pilots<\/a> in corporate settings,\u00a0which\u00a0found that 95 percent of enterprise rollouts are currently failing.<\/p>\n

“The story is spooking people,” as an anonymous trader working with a multibillion-dollar tech fund recently told the Financial Times<\/em><\/a>.<\/p>\n

Some commentators, like UBS head of global equities Ulrike Hoffmann-Burchardi, aren’t shy about acknowledging the shaky ground AI stocks have been treading, telling\u00a0CNN\u00a0<\/em>that<\/a> “investors rotated out of high-momentum tech stocks, reflecting renewed jitters over the sustainability of the AI trade.”<\/p>\n

OpenAI CEO Sam Altman,\u00a0usually an unflagging automation hype man, seems to concur. Last week, the AI tycoon told reporters that tech stocks were way overhyped<\/a> on the buzzy new software.<\/p>\n

“Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes,” Altman said.<\/p>\n

There are also some other issues giving floor brokers heartburn these days, not least of which is the ongoing tug-of-war<\/a> between Trump and the Federal Reserve.<\/p>\n

Time will tell whether or not this rout is a temporary setback or the beginning of the end for one of the largest stock bubbles<\/a> ever recorded. One thing’s for sure: this can’t go on forever.<\/p>\n

More on stocks: <\/strong>AI Industry Trembles as Nvidia’s Stock Nosedives<\/em><\/a><\/p>\n

The post Wall Street Appears to Be Having Serious Doubts About AI<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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The amount of cash backing artificial intelligence right now is so high that it’s almost meaningless to the average person. There are now almost 500 AI unicorns \u2014 companies valued…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1539,177,2735,3406],"tags":[],"class_list":["post-4652","post","type-post","status-publish","format-standard","hentry","category-ai-hype","category-artificial-intelligence","category-nvidia","category-stock-market"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/4652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=4652"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/4652\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=4652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=4652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=4652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}