AI summary
Summary of article:
The sharp decline in technology stocks sent the market into panic and Wall Street reassessed the prospects for AI and data centers. Some investors are worried that the AI market has peaked, but others believe there are still buying opportunities despite the decline in valuations.
Bloomberg reported that technology stocks crashed on the 5th.Goldman Sachs Stock trading desks received a large number of calls from investors asking when the slide in technology stocks would end, but buyers were nowhere in sight. John Flood, head of Goldman Sachs’ Americas equity execution services, said the 4th was one of the busiest trading days for the department this year. On Thursday, the phone was ringing continuously to inquire about the market situation, but there were less buy orders in the trading department.
As technology stocks suffered a heavy blow, CNBC News Channel analyzed on the 5th that due to the Democratic Party’s opposition to data centers,republican party more positive,wall Street We are reevaluating how any measure to restrict data centers will impact the future growth of the technology companies involved following the change in majority in Congress.
Peter Boockvar, chief investment officer at investment advisory firm One Point BFG Wealth Partners, originally predicted capital spending of up to $1.2 trillion might not happen next year, but he is now doubtful. “This could be the beginning of the end for the AI market,” he said.
Analysts said that even if the AI boom is over, investors should re-examine how they plan to participate in AI investments in the future.
Eric Johnston, director of equities business at Cantor Fitzgerald, said that the prospects for building AI infrastructure have changed dramatically, and the entire economy, all consumer and corporate growth and profits are closely linked to AI infrastructure.
CNBC financial commentator Josh Brown said the 10-year US Treasury bond yield is at 4.8%. This low-risk investment return is attractive at the moment, causing investors to reconsider whether they want to take risk in highly volatile AI stocks.
Many investors believe that the AI market is not completely dead, but they should choose carefully.
Richard Clode, portfolio manager of Janus Henderson Investment Group, said that despite the decline in the major technology indexes, there are still some bright spots in the technology sector on the 5th. For example, Motorola Solutions did well and some funds flowed into the Internet sector. After Sony announced its bright financial results, its share price rose sharply overnight.
Some experts say the selloff has gone too far, and investors may begin testing the waters and enter the market on dips in small amounts.
Larry Adam, chief investment officer at investment house Raymond James, said that when such “indiscriminate selling” occurs, it is a “buying opportunity.” “If investors take a long-term view at today’s valuation levels, the future will prove to be a good buying opportunity,” he said. He said, investors should focus on fundamentals.
Victoria Green, chief investment officer at G Squared Private Wealth, said the problem is that it’s hard to tell whether this is a retracement of an uptrend or a true decline.
Summary FAQ
-
Goldman Sachs’ trading department said that a large number of investors were calling and asking when technology stocks would bottom, but there were very few actual purchases, which shows that although the market is eager to find answers, it still lacks the ability to take risks and the willingness to take risks.
-
Because the Democratic Party has a more positive attitude towards data centers, Wall Street is worried that after the majority change in Congress, relevant restrictions will suppress AI infrastructure and capital expenditure, which will also affect the future development of technology companies.
-
Some believe the AI market may be at the beginning of its end, but others say selling has become excessive and valuations have fallen. If investors focus on fundamentals and take a long-term perspective, there may be a small bargain opportunity now.
