Falling for 7 Straight Sessions, Longest Slump in 4 Years... AI Earnings Report Ahead as Major Turning Point

As artificial intelligence-related stocks dropped across the board on the New York Stock Exchange on the 24th local time, cautious sentiment surrounding AI investment as a whole is growing.

Nvidia shares closed down 2.9% from the previous session at $208.48 on this day.

This marks a decline for 7 consecutive trading sessions starting from the 14th.

The drop during this period reached 7.5%.

This is the first time in about 4 years, since September 2022, that Nvidia has fallen for 7 straight sessions.

The Philadelphia Semiconductor Index also fell by 2.7%.

Semiconductor stocks slumped across the board, with AMD down 3.5%, Broadcom down 2.6%, and Micron down 5.8%.

A combination of multiple adverse factors is weighing on the stock price weakness.

Reports emerged that Nvidia notified corporate clients on the 22nd that it would raise the prices of AI servers launching next year by up to 15%, citing rising memory prices.

In addition, criticisms surrounding the so-called "circular financing" method of investing stakes in companies that are also its largest clients, such as OpenAI and Anthropic, as well as growing political backlash over the construction of AI data centers, are reportedly acting as burdens on the stock price.

The outflow from AI-related stocks, led by Nvidia, continues even as some tech stocks have recently rebounded.

Bloomberg explained this as a sign that funds exiting AI stocks are not leaving the stock market entirely, but rather shifting to other sectors.

However, Bloomberg diagnosed that the overall AI narrative itself is not broken.

AI infrastructure-related companies still account for about half of S&P 500 earnings growth, and the median profit growth rate for all companies in the past quarter reached 14%, indicating that the growth base is broadening.

Accordingly, Nvidia's earnings report scheduled for the 26th is considered a touchstone to gauge the overall direction of AI-related stocks.

Regarding this, Bloomberg evaluated it as "the event closest to a quarterly national referendum on AI-related stocks."

As artificial intelligence-related stocks dropped across the board on the New York Stock Exchange on the 24th local time, cautious sentiment surrounding AI investment as a whole is growing.

Nvidia shares closed down 2.9% from the previous session at $208.48 on this day.

This marks a decline for 7 consecutive trading sessions starting from the 14th.

The drop during this period reached 7.5%.

This is the first time in about 4 years, since September 2022, that Nvidia has fallen for 7 straight sessions.

The Philadelphia Semiconductor Index also fell by 2.7%.

Semiconductor stocks slumped across the board, with AMD down 3.5%, Broadcom down 2.6%, and Micron down 5.8%.

A combination of multiple adverse factors is weighing on the stock price weakness.

Reports emerged that Nvidia notified corporate clients on the 22nd that it would raise the prices of AI servers launching next year by up to 15%, citing rising memory prices.

In addition, criticisms surrounding the so-called "circular financing" method of investing stakes in companies that are also its largest clients, such as OpenAI and Anthropic, as well as growing political backlash over the construction of AI data centers, are reportedly acting as burdens on the stock price.

The outflow from AI-related stocks, led by Nvidia, continues even as some tech stocks have recently rebounded.

Bloomberg explained this as a sign that funds exiting AI stocks are not leaving the stock market entirely, but rather shifting to other sectors.

However, Bloomberg diagnosed that the overall AI narrative itself is not broken.

AI infrastructure-related companies still account for about half of S&P 500 earnings growth, and the median profit growth rate for all companies in the past quarter reached 14%, indicating that the growth base is broadening.

Accordingly, Nvidia's earnings report scheduled for the 26th is considered a touchstone to gauge the overall direction of AI-related stocks.

Regarding this, Bloomberg evaluated it as "the event closest to a quarterly national referendum on AI-related stocks."

Reported by Kim Jiuk | Video by Kim Na-on | Graphics by Yook Do-hyun | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.