US Tech Stocks Dive Amidst AI Overvaluation Concerns

Stock markets for US tech companies took a hit this week, with investors concerned about the inflated valuations of artificial intelligence (AI) firms. Ahead of Nvidia’s earnings report, which is expected to shed light on the sector’s financial health, Nasdaq experienced a 1.8% decline. Tech giants like Microsoft, Amazon, Meta, and Nvidia suffered losses of between 3% and 3.5%. These sell-offs highlight growing scrutiny by institutional investors regarding risk management within the technology sector and how they plan to adjust their investments based on Nvidia’s future performance.