Global markets have been hit with a sharp correction as investors increasingly question the valuation of artificial intelligence (AI) companies. The US, Asia, and Europe saw significant falls across multiple stock exchanges, including the Nasdaq and S&P 500, which suffered their largest one-day percentage drop in almost a month.
The tech-heavy Nasdaq fell by 2% after technology shares pulled it lower, with several top AI-related stocks suffering one-day drops. Among them, Nvidia, Amazon, Apple, Microsoft, Tesla, Alphabet (the parent company of Google), and Meta experienced sharp declines, while Palantir slumped by nearly 8%. This downturn has sparked criticism from the CEO of Palantir, Alex Karp, who accused short-sellers like Michael Burry – a prominent critic of the AI sector – of trying to undermine investor confidence.
Burry's skepticism was further exacerbated when he bet against both Palantir and Nvidia in the past. The AI bubble concerns have also led investors to withdraw their money from riskier assets such as cryptocurrencies, with the price of bitcoin briefly dipping below $100,000 for the first time since June.
Experts have warned that the rapid growth of AI companies may be nearing its end, citing concerns about valuations and return on investment. Analysts at Deutsche Bank noted a growing chorus discussing whether we are witnessing an equity correction, while another analyst pointed out that most AI investments are concentrated in just a few tech companies, making them vulnerable to market downturns.
These concerns have led several prominent CEOs – including Jamie Dimon of JP Morgan Chase and those from Morgan Stanley and Goldman Sachs – to caution about the potential for a market correction. The economic outlook remains uncertain as investors weigh the risks of valuations, inflation, and interest rates.
The tech-heavy Nasdaq fell by 2% after technology shares pulled it lower, with several top AI-related stocks suffering one-day drops. Among them, Nvidia, Amazon, Apple, Microsoft, Tesla, Alphabet (the parent company of Google), and Meta experienced sharp declines, while Palantir slumped by nearly 8%. This downturn has sparked criticism from the CEO of Palantir, Alex Karp, who accused short-sellers like Michael Burry – a prominent critic of the AI sector – of trying to undermine investor confidence.
Burry's skepticism was further exacerbated when he bet against both Palantir and Nvidia in the past. The AI bubble concerns have also led investors to withdraw their money from riskier assets such as cryptocurrencies, with the price of bitcoin briefly dipping below $100,000 for the first time since June.
Experts have warned that the rapid growth of AI companies may be nearing its end, citing concerns about valuations and return on investment. Analysts at Deutsche Bank noted a growing chorus discussing whether we are witnessing an equity correction, while another analyst pointed out that most AI investments are concentrated in just a few tech companies, making them vulnerable to market downturns.
These concerns have led several prominent CEOs – including Jamie Dimon of JP Morgan Chase and those from Morgan Stanley and Goldman Sachs – to caution about the potential for a market correction. The economic outlook remains uncertain as investors weigh the risks of valuations, inflation, and interest rates.
The AI bubble has been bursting for a while now... it's just a matter of time before the whole thing crashes down 
. I mean, sure, AI is cool and all, but can we really afford to be throwing money at these tech giants like they're going out of style? 
We need to take a step back and assess whether these companies are truly innovating or just milking the hype for all it's worth 
.
. So yeah, I'd say we've been overvaluing these companies for far too long 
.
. Can't we just have one conversation without someone else throwing a curveball? 
They need to actually deliver on those promises and show us some real growth, not just hype 
think about it, if ppl are getting spooked by these valuations, maybe that means we'll see some real innovation & progress instead of just everyone chasing the next big thing 
and who knows, maybe this correction will lead to some healthier investment habits 
. The whole thing just feels so... unstable 
. I mean, who knew that Michael Burry's critiques were going to have such a direct impact on the market? 
?
. i mean, have you seen how many big tech companies are involved? its like, we're gonna be stuck with a few giant players dominating the entire market 
and that just makes me nervous 
Anyway, I'm not surprised to see these tech giants taking a hit. Nvidia and Amazon have been overhyped for years now. 
.
.
. I'm not saying AI won't be useful or important, but at least have some self-awareness before throwing your money around like confetti 
his whole job is based on AI tech and now it's taking a hit 
"AI is gonna change everything" 
nope it's just a bunch of overvalued tech companies that are going to tank 
there's still so much innovation happening in AI but maybe we need to take a step back and breathe 
. Tech investors have been living in cloud 
for too long. Everyone's chasing green 
but nobody's asking if it's sustainable 
. Palantir might be overhyped 
, and nobody knows what's next 
. Jamie Dimon is right 
, we need to chill out 
and think about the numbers 
... with seatbelts on 
. It's crazy how some CEOs are now saying we're due for a correction 
, and their valuations just keep on getting crazy 
. I'm not sure how much more we can take before the whole thing comes crashing down 
? Is it just a euphemism for "tech investors being reckless"? Because if so, I'm not sure that's entirely fair. The truth is, we're living in a time where technological advancements are happening at an unprecedented pace, and it's hard to keep up with the value of companies that are literally changing the world 
.
. Some people are saying it's a correction, while others think it's something more 
. So, here's my two cents: if AI companies are going to keep growing, their valuations need to catch up 
. Keep an eye on it, I guess 
. They're all caught up in the excitement, like we're living in some sci-fi movie 
. Meanwhile, analysts are already talking about an equity correction – basically, a market crash 
.
. You can't sustain growth forever 
and let the dust settle 
. Mark my words, AI bubble will pop soon 
. I'm all about the caution money, you feel? 