US markets experienced a significant downturn, with the Nasdaq Composite and S&P 500 suffering their worst day of the year due to a tumble in AI stocks and investor concerns about Federal Reserve interest rate hikes. The S&P 500 fell 2.64%, its worst day since October, while the Nasdaq Composite fell 4.18%, its worst day since April 2025.
European and Asian markets also saw mixed and negative performances, respectively, as investors worried about AI stocks and developments in the Middle East. The US economy added 172,000 jobs in May, raising the odds of interest rate hikes.
Despite market volatility, several AI-related stocks are expected to benefit from the growth of AI, including NVIDIA, Advanced Micro Devices (AMD), Micron Technology, Western Digital, and Cisco Systems. Anthropic's upcoming IPO could have a significant impact on AI infrastructure companies.
Meta Platforms Inc. is considering a rights offering to raise funds for its artificial intelligence push, while Google has signed a multi-year deal with SpaceX to provide compute capacity, with a monthly fee of $920 million. This deal's value exceeds SpaceX's projected annual revenue from Starlink, launch services, and AI.
Key Takeaways
['Nasdaq Composite and S&P 500 experienced their worst day of the year due to AI stock tumble and interest rate hike concerns.', 'European and Asian markets saw mixed and negative performances due to AI and Middle East worries.', 'US economy added 172,000 jobs in May, raising odds of interest rate hikes.', "Anthropic's IPO could impact AI infrastructure companies, benefiting NVIDIA, AMD, Micron Technology, Western Digital, and Cisco Systems.", 'Meta Platforms Inc. considers rights offering to fund AI push.', 'Google signs $920M monthly compute deal with SpaceX.', 'Barclays warns AI stock boom may be nearing a cooling-off period.', 'Hedge funds bet against call centre stocks due to AI threat.', 'AI remains a multi-year investment theme, with growing concentration risks.', 'Investors look to emerging markets for the next big wave in AI trade.']Nasdaq and S&P 500 plummet as AI stocks tumble
The Nasdaq Composite and S&P 500 suffered their worst day of the year as AI stocks tumbled and investors worried about Federal Reserve interest rate hikes. The S&P 500 fell 2.64%, its worst day since October. The Nasdaq Composite fell 4.18%, its worst day since April 2025. Strong jobs data raised odds for interest rate hikes.
European markets open mixed as AI stocks sell-off
European markets opened mixed as AI stocks sold off in Asia. The FTSE 100 and DAX fell, while the Paris CAC 40 and IBEX 35 rose. Investors awaited the US non-farm payrolls report and kept an eye on developments in the Middle East.
Asian stocks hit by AI and Middle East worries
Asian stocks took a hit as investors worried about the AI trade and developments in the Middle East. The US economy added 172,000 jobs in May, raising the odds of interest rate hikes.
5 AI Stocks to Benefit from Anthropic's IPO
The Anthropic IPO could have a significant impact on AI infrastructure companies. Five AI stocks that could benefit are NVIDIA, Advanced Micro Devices, Micron Technology, Western Digital, and Cisco Systems.
5 AI-Related Stocks to Buy and Hold for 5 Years
Five AI-related stocks to buy and hold for the next five years are NVIDIA, Advanced Micro Devices, Micron Technology, Western Digital, and Cisco Systems. These companies provide critical inputs for AI data centers.
AI remains a multi-year investment theme
Fund Manager William Ma of Grow Investment Group believes AI remains a multi-year investment theme. He highlights the growing concentration risks associated with the AI trade.
Where investors may find the next 'big wave' for AI
Tim Urbanowicz of Innovator from Goldman Sachs Asset Management urges investors to look beyond their backyards to emerging markets for the next big wave in AI trade.
5 AI Stocks to Own for the Inference Age
The second phase of the AI megatrend is about inference. Five AI stocks to own are AMD, Cerebras Systems, Nvidia, Micron, and Broadcom.
Barclays Warns AI Stock Boom May Be Nearing a Cooling-Off Period
Barclays warns that the AI stock boom may be nearing a cooling-off period. The bank notes that semiconductor stocks have risen at an exceptional pace, leaving positioning increasingly crowded.
Samsara stock price target raised to $42 by RBC
RBC Capital raised its price target on Samsara Inc to $42 from $41, citing the company's strong results and introduction of Operational AI products.
Meta weighs rights offer as big tech races to fund AI
Meta Platforms Inc. is considering a rights offering to raise funds for its artificial intelligence push, as big tech companies compete to develop more advanced AI capabilities.
Google signs $920M monthly compute deal with SpaceX
SpaceX announced a multi-year deal to provide compute capacity to Google, with a monthly fee of $920 million. The deal's value exceeds SpaceX's projected annual revenue from Starlink, launch services, and AI.
Hedge funds bet against call centre stocks
Hedge funds are betting against call centre stocks as the threat of artificial intelligence grows. They are shorting call centre stocks at a rate of 1.5 times the industry average.
Sources
- Nasdaq, S&P 500 suffer worst day of year, as AI stocks tumble, Fed rate-hike odds rise
- European markets open mixed as AI stocks sell-off hits Asia, South Korea drops 5%
- Asian stocks take another hit from AI, Mideast worries
- The Anthropic IPO Could Make These 5 AI Stocks Unexpected Winners
- Here Are 5 AI-Related Stocks to Buy and Hold for the Next 5 Years
- AI remains a 'multi-year' investment theme, says Fund Manager
- Where investors may find the next 'big wave' for AI trade
- 5 AI Stocks to Own for the Inference Age
- Hedge funds bet against call centre stocks as AI threat grows
- Barclays Warns AI Stock Boom May Be Nearing a Cooling-Off Period
- Samsara stock price target raised to $42 by RBC on AI products
- Meta weighs rights offer as big tech races to fund AI buildout
- Google signs $920M monthly compute deal with SpaceX — company’s projected annual data center revenue to exceed its combined proceeds from Starlink, launch services, and AI in 2025
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