The Nasdaq rose Monday as investors rotated back into chip stocks, after fears over the sustainability of the AI boom fueled last week’s selloff.
Momentum in the AI trade comes as investors await Wednesday’s earnings report from Meta — which has gained in AI on the back of massive investments.
“[Before] this selloff, I think investors were assuming that all AI investments were going to pay off,” an analyst told CNBC.
The market volatility has caused several tech IPOs, except possibly Anthropic’s, to be delayed this year. But investors’ “jittery nerves” mean they can see the weakness coming and are becoming more discerning, the CEO of Southeast Asia’s largest bank told Semafor. “The market’s speaking and it’s not a bad thing.”
