Chip companies fall on stock market amid concerns over AI investment
Investors fear that high financing costs and huge spending will undermine profit expectations for the AI sector.
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Shares in chip companies and other technology firms fell worldwide on Thursday. AP links the declines to fresh concerns about the cost of the AI boom. Investors are wondering whether the billions invested in data centres and chips will generate returns quickly enough.
On Wall Street, Nvidia fell 4.3 per cent on Thursday, Associated Press reported. Lam Research, a supplier of equipment and services to the semiconductor industry, dropped 11.6 per cent after issuing a profit forecast whose midpoint was below analysts’ expectations.
The move came despite quarterly results showing growth at some technology companies. Meta reported higher revenue, but its share price fell 7.9 per cent after profit came in below expectations. Tesla lost 2.6 per cent; profit was stronger than expected, but revenue fell short of the forecast.
According to market reports, the immediate cause was not one disappointing company, but the question of whether the investment wave is sustainable. Companies are borrowing money for data centres and to buy specialised chips. If interest rates remain high or customers adopt AI services more slowly, the payback period could become longer.
The declines spread to Asian markets. South Korea’s Kospi index fell 3.5 per cent, according to AP, Hong Kong’s Hang Seng 3 per cent and Japan’s Nikkei 2.7 per cent. These index declines alone do not show how much chip companies contributed to the losses.
The share-price falls do not prove that AI investment is failing economically. AP describes investor concerns about the relationship between spending, financing costs and future returns. The share-price movement alone provides no basis for a forecast about the Dutch economy.
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Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The share-price percentages and market movements can be checked in the AP update used. The article presents concerns about returns and financing as investors’ explanations, not as established economic conclusions.
- confirmed Nvidia fell 4.3 per cent on Thursday. — This percentage appears in the AP market update. source
- confirmed Lam Research fell 11.6 per cent after its quarterly forecast. — AP reports this share-price reaction and the lower-than-expected range. source
- confirmed Meta lost 7.9 per cent and Tesla 2.6 per cent. — These percentages are cited by AP. source
- confirmed The declines spread to the Kospi, Hang Seng and Nikkei. — AP reports declines of 3.5, 3 and 2.7 per cent respectively. source
Editor's note
The share-price movements and percentages cited come from the AP market update; Reuters and a second market source confirm broader pressure on chip and AI shares. The cause remains a market explanation, not a proven prediction about AI’s future profitability.Sources
- Worldwide drops for AI stocks send Wall Street toward its worst day since July as oil prices jump — Associated Press
- U.S. chip stocks rise after steepest weekly selloff in months — Reuters via Investing.com
- U.S. Blue Chips Rise, Chip Stocks Fall as Brent Nears $112 Intraday — Seoul Economic Daily
More on this in Dutch media
- Het Parool — „chipbedrijven nvidia”
- de Volkskrant — „chipbedrijven nvidia”
- NU.nl — „chipbedrijven nvidia”