of Nasdaq Composite U.S. stocks fell 0.84% on Monday, with technology stocks under pressure. apple, meta and oracle Each has fallen by more than 1%.
The essence of artificial intelligence Nvidia Performance was even worse, with a loss of almost 2%. CEO Jensen Huang said in October that the company’s business will reach “$5 trillion” between 2025 and 2026. When Nvidia reports its third-quarter results in the U.S. on Wednesday, investors will be scrutinizing Hwang’s comments for signs of strong growth in 2026 that the data points suggest.
The problem with promises and expectations is that disappointments are disproportionately painful, especially for companies that are one of two in the world of artificial intelligence (the other being OpenAI).
“If they give even slightly conservative guidance or forecasts about the demand for their chips, the market will take it badly,” said Ross Mayfield, investment strategist at Baird.
Despite a recent sell-off in tech stocks due to concerns about high valuations and capital spending, some analysts believe they could still end the year higher.
“We continue to see a balance of bullish and bearish signals heading into year-end, but our stance remains that a year-end rally is likely,” Canaccord Genuity analyst Michael Graham said in a note Monday.
Similarly, H.S.B.C. Chief multi-asset strategist Max Kettner said on Monday that the bank believes “the probability of a crash towards the end of the year, especially in equities, is much greater” than the probability of the AI bubble bursting.
If their predictions come true, investors will have a lot to celebrate during the Christmas season. And we can worry about AI in the new year.
What you need to know today
And finally…
Gold bars from precious metals dealer Pro Aurum.
Sven Hoppe | Picture Alliance | Getty Images
With prices at historically high levels, the wealthy are earning income by “renting out” their idle gold bars.
Gold prices have hit new records this year, and wealthy investors and family office executives are no longer content to keep their gold bars sitting in their vaults. They lease bullion to refiners, jewelers and processors for interest, contradicting gold’s reputation as a non-yielding asset.
Industry veterans CNBC spoke to said the appeal is intuitive. Investors who already plan to own gold can earn the yield paid in gold through lease payments, while jewelers and manufacturers use the lease payments to finance the gold they need for day-to-day production.
— Li Yingshan
