#ai-bubble-concerns

#ai-bubble-concerns

Shareholders have lingering questions over whether the current AI spending wave can sustain growth beyond the next few years, and whether Nvidia will remain as dominant as AI shifts from training models to running everyday tasks, analysts at Hargreaves Lansdown said in a note after the results.

We're on a rollercoaster of AI disruption with geopolitical risks adding to the uneasy ride. Sell-offs have rocked markets as artificial intelligence tools and services threaten to disrupt sectors. High geopolitical tensions have also been the theme so far this year, with the ongoing US military build‑up in the Middle East, while the assault on Venezuela and January's stand‑off over Greenland are still front of mind.

Nvidia's sterling armor was dented this month. After years of meteoric success, the chipmaker and its CEO Jensen Huang have increasingly found themselves playing defense - an unusual position for the company. Nvidia headed into the month with its stock price at an all-time high, bolstered by increasing AI spending from some of its major Big Tech customers like Meta, Microsoft, and Google.