AI, tech stocks set for big losing week after Nvidia earnings

Equal Nvidia CEO Jensen Huang failed to save tech and AI trading this week.

The chip giant’s talismanic leader touted “unorthodox” chip sales and dismissed talk of an “AI bubble,” and for a while the tide lifted all boats.

“There’s been a lot of talk about the AI ​​bubble,” Huang said during this week’s earnings call. “We’re seeing something very different from our perspective.”

The excitement from the explosion report quickly reversed, sending AI winners deep into the red, with very few beneficiaries left unscathed.

Every member of the Fab 7, except AlphabetIt was following a lost week with Nvidia Amazon And Microsoft I’m looking at the biggest losses.

Amazon and Microsoft led the group’s decline this week, falling 6% and 7% respectively. Meanwhile, Alphabet gained 8%. The search giant was also the only mega-cap to keep pace with the group’s November gains, thanks to a boost from the launch of Gemini 3.

SeerAnother major Nvidia customer is . The chipmaker also supplies major model developers such as OpenAI and Anthropic.

Chip stocks also fell amid broader turmoil in the tech market. Advanced Micro Devices And Micron Each fell more than 16 percent Marvel Technology It fell 10%. Quantum computing stocks IonQ And D-Wave fell more than 11% and 13%, respectively.

CoreWeaveThe company, which buys and leases Nvidia’s chips in data centers, was initially bullish on the chip maker’s earnings report but quickly reversed course. The company’s shares are down 7% this week.

AI excitement was waning as Nvidia’s earnings report approached on Wednesday, and investors looked to print to ease fears that the AI ​​bubble was on shaky ground. Since ChatGPT’s launch in late 2022, the stock has helped propel the market to all-time highs.

But concerns have increased in recent weeks as tech stocks have suffered stretched valuations.

Major investors, including Bridgewater’s Ray Dalio, told CNBC on Thursday that the market is definitely in a bubble.

Much of the concern stems from the increase in capital expenditure to support AI, and there is little sign that this will pay off for the majority of players.

Investor Michael Burry recently accused some of the largest cloud and infrastructure providers of understating depreciation expenses and predicting that their chips would have a longer life cycle, calling it “one of the most widespread frauds of the modern era.”

Earlier this month, Burry announced his bets against Nvidia and Palantir.

Shares of the software analytics company, which provides artificial intelligence tools to government and businesses, are down 11% this week. The stock has lost nearly a quarter of its value this month.

WRISTWATCH: Bridgewater founder Ray Dalio: We’re definitely in a bubble, but that doesn’t mean you should sell