Nasdaq 100 in Correction Territory as AI Darlings Sink

The Nasdaq 100 Index has entered correction territory, with a decline of more than 10% from its recent peak, as investors reassess the prospects of artificial intelligence (AI) stocks. The selloff has been particularly severe for companies like Nvidia Corp. and C3.ai Inc., which had previously soared on the AI hype. Analysts attribute the pullback to concerns about the sustainability of the AI frenzy and the potential for overly optimistic expectations. While AI remains a promising technology, there are questions about the ability of companies to monetize it effectively in the near term. The correction highlights the volatility and risks associated with investing in emerging technologies, as well as the importance of separating hype from fundamentals. Investors are now seeking more clarity on the real-world applications and revenue potential of AI before committing further capital.

Source: https://www.bloomberg.com/news/articles/2024-08-02/nasdaq-100-is-in-correction-territory-with-ai-darlings-sinking/