Given the rising concerns over the increasing cost of artificial intelligence infrastructure and the escalating risk of an economic downturn, major technology stocks have been particularly vulnerable during the market downturn in August, resulting in a decline in market capitalization.
According to the Intelligent Finance APP, due to the rising concerns over the increasing cost of artificial intelligence infrastructure and the escalating risk of an economic downturn, major technology stocks have been particularly vulnerable during the market downturn in August, leading to a decline in the market capitalization of these technology stocks.
Last month, due to concerns over the slowdown in YouTube ad sales and the profitability of Alphabet (GOOGL.US), Alphabet's market capitalization dropped by 4.7%. The U.S. judge's ruling on Google's violation of antitrust laws, as well as the emergence of new competitors such as OpenAI, which is developing an artificial intelligence-based search engine prototype, have also led to a decline in Google's stock price.
Affected by the slowdown in online sales, Amazon (AMZN.US) saw a 4.5% decrease in market capitalization.
Tesla (TSLA.US) experienced a 7.7% decline in market capitalization last month, due to weak second-quarter earnings and Canada's plan to impose 100% new tariffs on Chinese-made electric vehicles. The company, the world's largest automaker in terms of market cap, began exporting electric vehicles manufactured in Shanghai to Canada last year. The Canadian government's plan has raised concerns about exporting from the higher-cost production base in the United States, which could impact profitability.
Nvidia (NVDA.US), which holds over 80% of the market share in the artificial intelligence chip market, is in a unique position as the biggest driver and beneficiary of AI development. Its market capitalization fell by 7.7% to $2.92 trillion in the last week of August. The company had previously forecasted a lower-than-expected gross margin for the third quarter, and its revenue only met expectations, disappointing investors who were expecting stronger performance.
On a positive note, Eli Lilly and Co. (LLY.US), a U.S. pharmaceutical company, saw its market capitalization soar by nearly 20%, making it the company with the largest increase in the market. This is mainly due to strong sales and the significant risk reduction in type 2 diabetes among overweight adults with a weight loss drug launched by the company.
In the eyes of many people, Berkshire Hathaway (BRK.A.US) is a representative of the US economy. At the end of August, Berkshire Hathaway's market cap exceeded $1 trillion for the first time, reflecting investors' confidence in this conglomerate built by Warren Buffett over nearly 60 years.
Meta (META.US)'s market cap has also risen by nearly 10%. The company's second quarter revenue exceeded market expectations and is expected to experience strong growth in the third quarter, indicating that strong digital advertising spending on its platform may offset the costs of its artificial intelligence investments.