Ai Stocks Battered Heading Into Make-or-Break Nvidia Earnings
Artificial intelligence-linked shares fell on Tuesday, in lead-up to AI bellwether Nvidia's quarterly earnings, which could offer clarity on demand and justify the sector's lofty valuations. Technology stocks globally sold off this week after a TD Cowen analyst note said Microsoft has canceled leases for sizeable data center capacity in the U.S., with at least two private data-center operators. Investor skepticism has grown over the billions that U.S. tech firms have channeled into AI infrastructure due to slow payoffs and breakthroughs at Chinese startup DeepSeek.
- The growing concerns surrounding AI's slower-than-expected progress could ultimately prove to be a major challenge for investors who have bet heavily on its long-term potential.
- Will Nvidia's quarterly earnings provide a turning point in the sector, or will they merely serve as a temporary reprieve from the ongoing uncertainty that has plagued the AI industry?