AI Stock Slump Deepens as Costs Rise and IPO Market Cools
Part of composite article Memory Chip Prices Soar, But Big Customers Are Already Plotting a Workaround View full article →
Technology stocks ended a volatile week sharply lower as investors questioned whether artificial intelligence companies can justify their high valuations. The sell-off was driven by rising semiconductor costs, higher memory pricing, and increased capital spending, according to Bloomberg Intelligence Global Head of Technology Research Mandeep Singh.
On Bloomberg This Weekend, Singh and Bloomberg News Macro Strategist Cameron Crise told hosts David Gura and Christina Ruffini that the U.S. is also tightening restrictions on advanced AI models. Meanwhile, the IPO market is cooling. The key question, they said, is whether AI firms can generate enough revenue to cover their soaring costs.