Global markets have collapsed due to concerns about an AI bubble. What the media is writing

Global stock markets are falling due to concerns that an investment bubble is inflating in the field of artificial intelligence. Even a strong report from the manufacturer of Nvidia chips, which is the driver of the AI market, did not help stop the sales. The collapse also affected cryptocurrencies. What the world's media write about the state of the technology sector is in the Izvestia digest.

The New York Times: Anxiety over AI costs returns to markets

Shares in South Korea, Taiwan and Japan collapsed, negating the gains that began the day before, as investor concerns about a potential investment bubble in artificial intelligence (AI) spread from the United States to Asia. On November 21, the main indexes of South Korea and Taiwan fell by almost 4%. The decline was driven by a drop in shares of companies manufacturing microchips, including South Korea's SK Hynix, whose shares fell by more than 8%. Shares of Taiwan Semiconductor Manufacturing Company lost more than 4%.

On the eve of the global shares of technology companies rose briefly after the chip manufacturer Nvidia posted strong financial results, which made it clear to investors that demand for chips needed for projects in the field of artificial intelligence has not decreased. Japan's Nikkei 225 index posted its highest performance in a week due to a sharp rise in stock prices of many companies in the country's semiconductor industry. However, the relief proved short-lived, and investors began to lose their composure again.

NBC News: Stock market falls due to investor concerns about AI

What started as a momentous day for stocks turned into a massive drop. Investors expressed continued skepticism about the longevity of the AI boom and lost hope for support from the Federal Reserve System (FRS). The Nasdaq technology index fell by 2%, while the broad S&P 500 index fell by more than 1.5%. The Dow Jones Industrial Average, which tracks stocks of the 30 largest companies, fell by almost 390 points. Earlier in the day, it rose by 700.

Traders' hopes were boosted early Thursday by a higher-than-expected employment report, which appeared to show that the economy remains resilient. Even before trading began, the stock seemed poised to rise after Nvidia, at the center of the artificial intelligence boom, reported strong quarterly earnings and revenue. However, by noon, the dynamics of the markets turned red.

Associated Press: Investors are waiting for artificial intelligence to meet their expectations

Fears that the AI boom will turn into an inflated bubble have subsided for now, thanks to Nvidia's brilliant quarterly earnings report, which illustrated how its irreplaceable chips have transformed it into the most expensive company in the world. But that doesn't mean that the specter of the AI bubble won't return in the coming months and years, as major tech companies prepare to spend trillions more dollars on the technology that industry leaders believe will determine the winners and losers during the next wave of innovation.

But it is still unclear whether all this money being poured into AI will bring the profits and productivity that its proponents promise. This leaves open the question of whether all these real expenses will be worth it. The latest survey of global fund managers conducted by Bank of America found a record percentage of investors who said companies were "investing too much."

Bloomberg: The cryptocurrency market continues to fall

The leader of the crypto market, bitcoin, fell by 2.1%, falling below $86 thousand for the first time since April, as the market struggled to find new buyers, and the momentum that supported prices at the beginning of the year faded. The pullback came after several weeks of relaxation among active traders and remaining positions after record growth in October, which made the market more vulnerable to selling pressure and sharp fluctuations.

Stocks surged on a new wave of AI enthusiasm after Nvidia's positive results, but then that growth faded. Concerns about overestimating the cost of AI and doubts about the Fed's ability to cut rates in December led to volatility on Wall Street. Cryptocurrencies remain trapped in a spontaneous reduction in leverage and a decrease in retail demand — the split between assets has intensified since the beginning of October. The recession forced options traders to rush to the threshold of $ 85 thousand.

Neural network games: business is faced with a shortage of AI specialists

Why companies' investments in artificial intelligence do not solve the shortage of personnel

Reuters: Technology sector is under threat

Asian stocks continued to fall globally on Friday, as the long-awaited U.S. employment report failed to clarify the short-term dynamics of interest rates, and investors were getting rid of risky assets even after Nvidia's stunning results. European markets are preparing for a sharp decline in early trading: EURO STOXX 50 futures fell by 1.4%, and FTSE futures fell by 1%. Wall Street futures rose 0.2% in Asian trading.

The data showed that the U.S. economy created many more jobs in September than expected, but the rising unemployment rate and downward revision of forecasts for previous months painted a gloomy picture for the Fed. Since the next employment report will be available only after the Fed meeting, investors were not convinced that an easing would occur next month.