NVIDIA CEO Jensen Huang speaks during the Nvidia GTC (GPU Technology Conference) Live Keynote Pregame on October 28, 2025 in Washington, DC.
Jim Watson | AFP | Getty Images
A rift is emerging as the euphoria surrounding artificial intelligence collides with the limits of reality.
Last night, tech giants like AMD shattered expectations for AI chip demand, with Palantir reporting another strong quarterly growth. But the Nasdaq fell, revealing that Wall Street’s playlist was stuck on one track: AI mania.
Palantir, the symbol of that obsession, fell nearly 8% despite a blowout quarter, and Oracle fell nearly 4%. Even AI darlings Nvidia and Amazon have pulled out.
What’s the message? It’s either AI or nothing, and its tunnel vision is flashing warning signs.
Some CEOs are warning of a market correction, and others are warning of an inevitable mismatch between profits and the huge capital investments needed to power AI. One CEO even told CNBC that stocks are in a correction, even if the S&P 500 doesn’t reflect it.
Perhaps it’s time for investors to get off the hype and look at the broader market. Even the most powerful empires fall apart when they start believing in their own legends.
What you need to know today
SoftBank’s market capitalization will decrease by approximately $32 billion. Shares plunged more than 14% on Wednesday as Asian AI companies widened their decline as investors wary of soaring valuations in the market’s most crowded trade.
PE industry consolidation. “Why are there more private equity funds in North America than there are McDonald’s franchises,” Joe Bay, co-chief executive officer of KKR&Co, said Tuesday. PE managers are bracing for a wave of consolidation as investors seek higher returns and stronger governance. For reference, there are approximately 14,000 McDonald’s and 19,000 private equity funds in the United States.
The Democratic Party won an overwhelming victory in the US election. On Tuesday night, Democrats won overwhelming victories in three of the nation’s most contested elections, including New Jersey and Virginia. In New York, Zoran Mamdani, a self-proclaimed democratic socialist, defeated his opponent Andrew Cuomo and Republican candidate Curtis Sliwa.
Asian market tank. Japan’s Nikkei Stock Average fell below the 50,000 yen mark on Wednesday, as Asian markets widened as investors fled AI-related stocks. South Korea’s Kospi also posted a loss of 6.16%, and semiconductor giants Samsung Electronics and SK Hynix also posted losses.
(PRO) Stock market correction in progress? Josh Brown, CEO of Ritholtz Wealth Management, said Tuesday that the stock market is undergoing a correction, even if the indexes don’t reflect it yet.
And finally…
On August 27, 2025, the Nvidia logo appears on the Nvidia headquarters building in Santa Clara, California. Chipmaker Nvidia is scheduled to announce its second-quarter financial results after the closing bell today.
Justin Sullivan | Getty Images News | Getty Images
Nvidia ramps up India expansion with $2 billion deep technology alliance to mentor AI startups
As a founding member of a $2 billion investment partnership, Nvidia will help train and mentor emerging deep tech startups in India and deepen its presence in the world’s third-largest startup ecosystem.
The US chipmaker has joined the India Deep Tech Alliance (IDTA), a group of private equity and venture capital investors pledging $2 billion in deep tech investments, as a founding member.
Deep tech startup is a general term for emerging companies in the semiconductor, space, AI, biotechnology, robotics, and energy fields.
— Priyanka Salve
