Editor's PiCK
US Stocks Shaken by 'AI Bubble Theory'…Palantir Falls 8% [New York Stock Market Briefing]
Summary
- It reported that major indices weakened as concerns over the overvaluation of AI-related stocks were raised in the New York market.
- In particular, Palantir recorded a sharp drop in its share price despite strong results, which led to a cooling of investor sentiment for large AI stocks overall.
- On Wall Street, it warned that current valuation levels are at historical highs, and some experts mentioned the risk of an 'AI bubble' and the possibility of a 10~20% market correction.
New York stocks fell on the 4th (local time) as concerns over overvaluation centered on artificial intelligence (AI)-related sectors emerged.
On the day, the Dow Jones Industrial Average closed at 47,085.24, down 251.44 points (-0.53%) from the previous close. The Standard & Poor's (S&P) 500 closed at 6,771.55, down 80.42 points (-1.17%), and the tech-heavy Nasdaq Composite closed at 23,348.64, down 486.09 points (-2.04%).
AI-based enterprise software company Palantir plunged 7.94% despite posting results that beat Wall Street expectations and raising its outlook.
With the stock having risen more than 150% so far this year, it is interpreted that investors, feeling the burden of the current price level, moved to realize profits.
Palantir's plunge cooled investor sentiment toward other AI-related stocks.
AI chip leader NVIDIA fell 3.96% on the day, and AI chip maker AMD (-3.70%) also saw large declines.
Tesla plunged 5.15%, and other large AI-related tech stocks such as Alphabet (-2.16%), Broadcom (-2.81%), Amazon (-1.83%), Meta (-1.59%), and Oracle (-3.75%) also weakened.
On Wall Street, warnings of overvaluation risk have been issued, saying that the valuation of the New York market, measured by indicators such as the price-earnings ratio, has reached historically high levels.
Some experts have warned that the AI-related stock bubble in the recent New York market is more severe than the 'dot-com bubble.'
The day before, David Solomon, CEO of Goldman Sachs, also joined these warnings at an event in Hong Kong, saying that a market correction of 10∼20% could occur within the next 12∼24 months, contributing to cooling investor sentiment.
Shin Min-kyung, Hankyung.com reporter radio@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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