Ai Stocks Battered Heading Into Make-or-Break Nvidia Earnings
Artificial intelligence-linked shares fell ahead of Nvidia's quarterly earnings, which could offer clarity on demand and justify the sector's lofty valuations. Technology stocks globally sold off as a TD Cowen analyst note cited Microsoft's cancellation of leases for sizeable data center capacity in the U.S. AI-darling Nvidia dropped 2.1% before its highly anticipated quarterly earnings. Investors will focus on demand for its pricey AI chips after low-cost AI models from China's DeepSeek rattled the industry.
- The decline in AI stocks may signal a broader correction in the technology sector, as investors reevaluate their expectations for the long-term growth of artificial intelligence.
- How will Nvidia's quarterly earnings impact the valuation of smaller AI startups and venture capital firms that have poured billions into developing AI infrastructure?