Nvidia Leads AI While Tesla Apple Microsoft Stocks Drop

Global markets recently experienced significant turbulence, with US stock indexes like the S&P 500 and Nasdaq-100 seeing dramatic reversals that wiped out over $2.7 trillion in equity market value. This volatility largely stemmed from investor worries about the high valuations of AI companies and the potential for an 'AI bubble,' despite strong earnings reports from key players like Nvidia. Even as Nvidia's CEO Jensen Huang denied an AI bubble and CFO Colette Kress confirmed a 'half a trillion' revenue forecast, the company's stock still dropped, pulling down other tech giants such as Tesla, Apple, Microsoft, and Amazon. Only Alphabet, with its Gemini launch, managed to buck the trend among the 'Magnificent 7' tech stocks. Asian markets, including South Korea's Kospi and Japan's Nikkei, also saw sharp declines, with major chipmakers like Samsung Electronics and SK Hynix experiencing significant losses. Bitcoin's price also fell below $82,000 at one point, reflecting broader market caution. Investors are questioning whether the massive capital spending on AI infrastructure, estimated to reach $405 billion this year, will translate into sufficient profits to justify current stock prices. This skepticism was further fueled by mixed US jobs data, which influenced expectations for Federal Reserve interest rate cuts. Despite these immediate concerns, some analysts, like Wells Fargo's Ohsung Kwon, maintain a positive long-term outlook, predicting the S&P 500 could reach 7800 by the end of 2026. Meanwhile, the AI industry continues to push forward with development and production. Foxconn, for instance, has partnered with OpenAI and now produces 1,000 AI server racks weekly, with plans to increase this output, addressing OpenAI CEO Sam Altman's observation that demand for key AI infrastructure parts far outstrips current supply. Meta AI also introduced Segment Anything Model 3 (SAM 3), an open-source AI model with 848 million parameters designed for advanced image and video segmentation. Educational initiatives are also expanding, with JetBrains and Nebius launching free courses on using AI in software development. However, the rapid advancement of AI is not without its critics, as debates about AI's impact on human creativity in art and potential job displacement continue. These concerns were underscored by an alleged threat at OpenAI's San Francisco offices from an individual associated with an activist group worried about AI replacing human roles.

Key Takeaways

  • US stock markets experienced significant volatility, with the S&P 500 and Nasdaq-100 erasing over $2.7 trillion in value due to AI bubble fears and high valuations.
  • Despite strong earnings and a 'half a trillion' revenue forecast, Nvidia's stock dropped, affecting other major tech companies like Tesla, Apple, Microsoft, and Amazon.
  • Big Tech companies are projected to invest $405 billion in AI infrastructure this year, up from $280 billion, signaling strong belief in AI's future.
  • Foxconn has partnered with OpenAI and now produces 1,000 AI server racks weekly, with plans for increased production, addressing high demand for AI infrastructure.
  • Meta AI launched Segment Anything Model 3 (SAM 3), an open-source AI model with 848 million parameters for advanced image and video segmentation.
  • Concerns about the 'AI bubble' persist, with investors questioning if massive AI spending will generate sufficient profits, despite Nvidia CEO Jensen Huang denying such a bubble.
  • Mixed US jobs data and fluctuating hopes for Federal Reserve interest rate cuts contributed to market uncertainty, alongside global economic indicators.
  • The market slump led to a debate on AI's impact on jobs and creativity, highlighted by an alleged threat at OpenAI's offices from an activist concerned about AI replacing human roles.
  • Wells Fargo analyst Ohsung Kwon forecasts the S&P 500 to reach 7800 by the end of 2026, suggesting a positive long-term outlook for AI investments despite current challenges.
  • JetBrains and Nebius are offering free courses on using AI in software development, including JetBrains' AI feature Junie and the basics of AI agents.

Stock Market Plunges After Early Gains

The S&P 500 and Nasdaq-100 indexes saw a dramatic reversal on Thursday, erasing early gains and closing significantly lower. This wiped out over $2.7 trillion in equity market value. Traders are looking for reasons, with theories including worries about AI project profits and high stock valuations. Even strong earnings from Nvidia Corp. could not stop the selloff, which also affected major tech companies like Tesla, Apple, and Microsoft. The VIX Index, a measure of expected stock volatility, rose above 26 for the first time since April.

US Stocks Fall Amid AI Worries

US stock markets continued to fall on Thursday, reversing earlier gains despite positive news from Nvidia and Walmart. Investors remain concerned about the high valuations of AI companies and the future path of interest rates. Nvidia's CEO Jensen Huang tried to calm fears about an AI bubble, but the company's shares still dropped over 3 percent. Major Asian markets like Japan's Nikkei 225 and South Korea's Kospi also saw significant losses on Friday. Bitcoin's price fell below $90,000, adding to the market's uncertainty.

Asian Tech Stocks Plunge on AI Bubble Fears

Asian stock markets experienced sharp declines on Friday, led by tech companies, as fears about an AI bubble continued. A strong earnings report from Nvidia initially boosted confidence, but this quickly faded. A Wall Street sell-off and mixed US jobs data for September also dampened hopes for a Federal Reserve interest rate cut. Major chipmakers like Samsung Electronics, SK Hynix, and TSMC saw significant drops. Japan's SoftBank also plunged over 10 percent, and Bitcoin fell below $93,000.

Market Slump Sparks Debate on AI and Jobs

The recent market slump has investors debating its cause, pointing to concerns about AI valuations or a weakening job market. Nvidia's strong earnings report could not prevent a significant market reversal on Thursday. Investors are questioning if the massive spending on AI will lead to enough profits to justify current stock prices. The delayed September US jobs report showed 119,000 new jobs and a 4.4 percent unemployment rate. However, job gains were narrow, and wage growth slowed, suggesting a less robust labor market.

US Stocks Rise on Rate Cut Hopes and Nvidia News

US stock indexes jumped on Friday as traders became more confident that the Federal Reserve will cut interest rates next month. Comments from Fed Chair Jerome Powell and other officials supported this belief. Shares of Nvidia rose 1.4 percent after a report suggested the US government might allow it to sell H200 AI chips to China. A decline in Treasury yields and a December jobs report showing fewer new jobs and slower wage growth also contributed to the positive market mood.

Nvidia Earnings Fail to Boost AI Stocks

Nvidia, a leading AI chipmaker, reported strong earnings and future sales forecasts, but its stock still fell on Thursday. This decline pulled down major US stock indexes, which had initially rallied. Investors are worried that too much money is being spent on AI without clear returns. The September US jobs report, showing 119,000 new jobs, did not calm markets, as some believe it will make the Federal Reserve delay interest rate cuts. Bitcoin and other cryptocurrencies also dropped significantly, showing investors are becoming more cautious.

Global Markets Jittery on AI and Economic Data

Global markets are showing caution after Wall Street experienced significant losses, despite strong earnings from Nvidia. The S&P 500 saw its biggest intraday swing since April, as doubts about AI company valuations resurfaced. New data showed US real wages stagnated in September. Online fashion retailer Asos is now using AI-powered stylists to help customers, as its sales fell 12 percent in the year to August 31. Mexico's economy also shrank in the July to September quarter, putting it close to a recession.

Investor Worries Extend Beyond AI and Nvidia

Investor concerns now reach beyond just AI and Nvidia, despite the chipmaker's strong earnings report. The Nasdaq 100 and S&P 500 experienced significant reversals, falling sharply from their October peaks. Worries include high stock valuations, aggressive debt financing, and the overall health of the economy. Other signs of market anxiety include increased demand for safe assets, declining shares of business development companies, and a sharp drop in cryptocurrencies like Bitcoin, which fell below $82,000.

US Stocks Swing From AI Hope to Bubble Fears

US stocks saw a dramatic shift on Thursday, moving from early optimism to concerns about an AI bubble. The September US jobs report, showing 119,000 new jobs, was better than expected but reduced hopes for a Federal Reserve rate cut in December. Nvidia's CEO Jensen Huang denied an AI bubble, and the company's CFO Colette Kress confirmed a "half a trillion" revenue forecast, yet Nvidia's stock still fell. Analysts are worried about companies taking on large debts to build AI data centers.

AI Stocks Tumble as US Market Swings

US stocks experienced a sharp mood swing on Thursday, with AI stocks falling after initial gains. The September US jobs report showed 119,000 new jobs, which was better than expected but lowered hopes for a Federal Reserve interest rate cut in December. Investors are now facing high stock valuations and fewer anticipated rate cuts. Despite strong earnings, Nvidia's stock dropped, as analysts voiced concerns about companies taking on debt to build AI data centers. Meanwhile, Japan announced a $135 billion stimulus package, and Singapore increased its GDP forecast.

Tech Stocks Face Big Losses After Nvidia Earnings

Tech stocks are set for a major losing week, especially AI companies, following Nvidia's earnings report. Despite strong results and CEO Jensen Huang denying an "AI bubble," investor worries continued, causing Nvidia's stock to drop. Most of the "Magnificent 7" tech stocks, including Amazon and Microsoft, are expected to end the week with losses. Alphabet is an exception, gaining due to its Gemini launch. Ray Dalio, founder of Bridgewater, stated that the market is "definitely in a bubble."

Foxconn Boosts AI Rack Production to 1,000 Weekly

Foxconn Chairman Young Liu announced that the company can now produce 1,000 artificial intelligence racks each week. He expects this production rate to increase even more next year. Liu shared this news at Foxconn's tech day, an event attended by important partners and clients such as Nvidia and OpenAI.

Foxconn Partners OpenAI, Makes 1,000 AI Server Racks Weekly

Foxconn has partnered with OpenAI on AI hardware, and its production of AI server racks has reached 1,000 units per week. Foxconn Chairman Liu announced this at Hon Hai Technology Day in Taipei. He noted that 40 percent of the components in each rack are made by Foxconn itself. OpenAI CEO Sam Altman also spoke, emphasizing that demand for key AI infrastructure parts is much higher than the current supply. Foxconn is now NVIDIA's main producer of AI racks and expects AI demand to be a key driver for its growth in 2026.

Big Tech Bets $405 Billion on AI Future

Big Tech companies are making a massive investment in AI infrastructure, with capital spending estimates for the AI buildout increasing from $280 billion to $405 billion this year. This shows a strong belief in the future of artificial intelligence. AI accelerators like GPUs are driving this boom, making Nvidia the world's most valuable company. Analyst Beth Kindig predicts that AI stocks are well-positioned for strong growth in 2026 due to these continued investments.

Meta AI Launches SAM 3 for Image Video Segmentation

Meta AI has released Segment Anything Model 3, or SAM 3, an open-source AI model for finding and segmenting concepts in images and videos. This new model can identify and track all instances of a specific idea, like "every red baseball cap," using simple text or visual prompts. SAM 3 improves upon earlier versions by focusing on "Promptable Concept Segmentation" and using a "presence token" to help distinguish similar concepts. The model has 848 million parameters and uses a shared vision encoder for its detector and tracker. Meta also created the SA-Co dataset with over 4 million unique concepts to train and test SAM 3.

JetBrains and Nebius Offer Free AI Software Courses

JetBrains and Nebius have launched two free courses to teach people how to use artificial intelligence in software development. The "Coding With Junie" course shows how to use JetBrains' AI feature, Junie, for tasks like setting up projects, writing code, and creating documentation. The second course, "AI Agents as Your Team," explains the technical basics of AI agents and discusses their limits, such as transparency and the need for human oversight. These courses are part of a larger ten-part learning program on AI-assisted programming.

Asia Tech Markets Plunge as AI Rally Fades

Asia's tech markets experienced a sharp downturn on Friday, as investors sold off semiconductor stocks and renewed fears of an AI bubble. South Korea's Kospi index dropped 3.8 percent, with major losses from Samsung and SK Hynix. Taiwan's Taiex fell 3.6 percent, and Japan's Nikkei lost 2.4 percent, led by a significant plunge in SoftBank shares. This followed a US market reversal that wiped out $2.7 trillion from the S&P 500. Despite Nvidia's earnings forecast, concerns about AI spending's returns caused widespread selling in AI-related stocks.

AI Threatens Human Creativity in Art

The article argues that artificial intelligence is taking away human creativity, especially in music. AI-generated songs are now popular on Spotify charts, which the author believes shows a focus on making money over true art. The author compares this to using a robot to play baseball and calling oneself a player, saying it removes any real accomplishment. The piece criticizes the idea that AI makes art more accessible, suggesting it instead creates a lot of low-quality content. It concludes that technology should help human creativity, not replace the need for personal skill and effort.

AI Bubble Down But Not Out Says Analyst

Stocks are having a difficult month, but one analyst believes the "AI bubble" is not finished. Wells Fargo analyst Ohsung Kwon predicts that the S&P 500 index will reach 7800 by the end of 2026. This suggests that while there are current challenges, the long-term outlook for AI-related investments remains positive.

OpenAI Offices Locked Down After Threat

OpenAI's San Francisco offices were locked down on Friday afternoon due to an alleged threat from an individual. This person was previously associated with the Stop AI activist group. San Francisco police received a 911 call about a man threatening harm near OpenAI's offices. Employees were told to stay inside, remove their badges when leaving, and avoid wearing clothing with the OpenAI logo. The individual had previously protested against AI development, expressing worries about AI replacing human jobs and discoveries.

Sources

NOTE:

This news brief was generated using AI technology (including, but not limited to, Google Gemini API, Llama, Grok, and Mistral) from aggregated news articles, with minimal to no human editing/review. It is provided for informational purposes only and may contain inaccuracies or biases. This is not financial, investment, or professional advice. If you have any questions or concerns, please verify all information with the linked original articles in the Sources section below.

AI Bubble Stock Market Nvidia Tech Stocks AI Investments Interest Rates OpenAI Foxconn AI Chips Market Volatility US Economy Job Market AI Infrastructure Meta AI AI Software AI and Creativity Samsung SK Hynix TSMC SoftBank Alphabet Gemini Asos SAM 3 JetBrains Nebius AI Agents AI Ethics Global Markets Stock Valuations GPU AI Profits AI Data Centers AI-assisted Programming Cryptocurrencies Federal Reserve Asia Tech Markets AI Technology H200 Chips AI Impact

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