tech stock
Is the AI bubble about to burst – and send the stock market into freefall? Phillip Inman
There are growing fears of an imminent stock market crash – one that will transform from a dip to a dive when euphoric headlines about the wonders of artificial intelligence begin to wane. Shares in US tech stocks have fallen in recent weeks and the prospect is that a flood of negative numbers will become the norm before the month is out. It could be 2000 all over again, and just like the bursting of the dotcom bubble it may be ugly, with investors junking businesses that once looked good on paper but now resemble a huge liability. Jerome Powell, the Federal Reserve chair, is one of the policymakers tasked with keeping the wolf from the door. Speaking on Friday at the annual Jackson Hole gathering of central bank governors in Wyoming, he tried to calm nerves.
- North America > United States > Wyoming (0.25)
- North America > United States > Massachusetts (0.05)
- Government > Regional Government > North America Government > United States Government (1.00)
- Banking & Finance > Trading (1.00)
- Banking & Finance > Economy (1.00)
What is DeepSeek and why did it cause tech stocks to drop?
DeepSeek was reportedly developed for a fraction of the cost of its US rivals - hundreds of millions of dollars less - raising questions about the future of America's AI dominance. The company's possibly lower costs roiled financial markets on 27 January, leading the tech-heavy Nasdaq to fall more than 3% in a broad sell-off that included chip makers and data centres around the world. Nvidia, a US-based company that makes the powerful chips that run AI, appears to have been hit the worst. It lost nearly 600bn in market value on Monday - the largest one-day drop for any company in US history - as its stock price plunged 17% over the course of the day. Nvidia had been the most valuable company in the world, when measured by market capitalization, but fell to third place after Apple and Microsoft on Monday when its market value shrank to 2.9tn from 3.5tn, Forbes reported.
What to Know About DeepSeek, the Chinese AI Company Causing Stock Market Chaos
A new Chinese AI model, created by the Hangzhou-based startup DeepSeek, has stunned the American AI industry by outperforming some of OpenAI's leading models, displacing ChatGPT at the top of the iOS app store, and usurping Meta as the leading purveyor of so-called open source AI tools. All of which has raised a critical question: despite American sanctions on Beijing's ability to access advanced semiconductors, is China catching up with the U.S. in the global AI race? At a supposed cost of just 6 million to train, DeepSeek's new R1 model, released last week, was able to match the performance on several math and reasoning metrics by OpenAI's o1 model – the outcome of tens of billions of dollars in investment by OpenAI and its patron Microsoft. The Chinese model is also cheaper for users. The upshot: the U.S. tech industry is suddenly faced with a potentially cheaper and more powerful challenger, unnerving investors, who sold off American tech stocks on Monday morning.
- North America > United States (1.00)
- Asia > China > Beijing > Beijing (0.26)
- Asia > China > Zhejiang Province > Hangzhou (0.25)
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- Government > Regional Government > North America Government > United States Government (0.91)
- Information Technology > Artificial Intelligence > Natural Language > Large Language Model (1.00)
- Information Technology > Artificial Intelligence > Natural Language > Chatbot (1.00)
- Information Technology > Artificial Intelligence > Machine Learning > Neural Networks > Deep Learning > Generative AI (0.71)
China's DeepSeek AI assistant becomes top free iPhone app as US tech stocks take a hit
Chinese AI assistant DeepSeek has become the top rated free app on Apple's App Store in the US and elsewhere, beating out ChatGPT and other rivals. It's powered by the open-source DeepSeek V3 model, which reportedly requires far less computing power than competitors and was developed for under 6 million, according to (disputed) claims by the company. At the same time, it offers performance that's on par with Claude-3.5, GPT-4o and other rivals, DeepSeek said last week. The news that DeepSeek topped the App Store charts caused a sharp drop in tech stocks like NVIDIA and ASML this morning. Google parent company Alphabet and Microsoft were also down this morning.
- North America > United States (0.27)
- Europe (0.07)
- Asia > Japan (0.07)
- Asia > China > Zhejiang Province > Hangzhou (0.07)
Why has Nvidia driven stock markets to record highs?
Investor excitement over artificial intelligence reached a new peak this week when better-than-expected results from chipmaker Nvidia drove stock markets in three continents to record highs. The rally began on Thursday and continued into Friday, as Nvidia overtook Google's parent group, Alphabet, to become the third most valuable company in the US. Its market capitalisation hit 2tn ( 1.58tn), surpassed only by Microsoft and Apple. The artificial intelligence (AI) boom has raised many questions, not least over safety and the impact on jobs, but there are also concerns that it might be driving unsustainable market exuberance. Here we look at the latest share price rise and whether it can be maintained.
- North America > United States > New York > New York County > New York City (0.06)
- Europe > Ukraine (0.05)
- Europe > Middle East (0.05)
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Github To Layoff 10% Of Global Workforce In Latest Tech Cuts
Github has announced plans to cut its workforce by 10% and will go fully remote, closing all of its physical offices as their leaves expire. They announced a hiring freeze back in January, and this will continue as part of the cost cutting operations. As well as shutting down their physical operations and showing staff the door, they'll also be conducting efficiency-led changes throughout the business to bring costs down. If it seems like there are new layoffs announced every day, it's because there practically are. We've seen layoffs from all across the tech sector, including household names like Google, Meta and Microsoft.
AI developments boost iShares Robotics and Artificial Intelligence ETF
The iShares Robotics and Artificial Intelligence ETF is weighted towards high-growth tech stocks like iQIYI and Kingsoft Cloud Holdings, which have struggled on the back of rising interest rates. New advances in the AI industry, however, could help to turn around the fund's performance. The iShares Robotics and Artificial Intelligence ETF [IRBO] has dropped in value by 31.7% in the last year. The fund, which has a large exposure in tech and emerging market companies, has been at a disadvantage this year as investors favour the stability of larger asset-heavy shares. Rising interest rates have also impacted the discounted valuations of the high-growth shares held within the fund.
CES 2023: What Should You Expect?
The Consumer Electronics Show (CES) launches tomorrow, January 5th, the first time the world's largest technology exhibition has been properly running for two years. If you're not 100% sure CES is, it's a global tech trade show organized by the Consumer Technology Association (CTA), held every year (apart from when Covid messes it up) in Las Vegas, Nevada. It's widely considered one of, if not the, influential technology trade show in the world. The show attracts companies and professionals from around the globe, showcasing the latest and greatest in consumer electronics, including smartphones, laptops, TVs, home appliances, and much more. CES also features keynote speeches, panel discussions, and other events, giving attendees the opportunity to learn about the latest trends and innovations in the technology industry.
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Smart Investment: Top 5 Tech Stocks to Drive Profit from Q2 2022
It is a popular trend to start investing in regular and popular tech stocks from leading tech companies across the world. Technology stocks ensure high profit in digital wallets owing to the constant innovations with cutting-edge technologies for all kinds of industries. Thus, tech investors can start their Q2 investment with the investment in the following tech stocks on April 4, 2022. Analytics Insight provides a list of the top five tech stocks, according to Yahoo Finance. SolarEdge Technologies, Inc. is one of the top tech stocks to buy for its optimized inverter systems for solar PV installations across the world.