AI stocks sink as Nvidia-led euphoria fades
Aug. 24, 2023 11:58 AM ET
C3.ai, Inc. (AI), NVDA GOOG, AMZN, MSFT, AMD, INTC, MRVL, MU, ADBE, AVGO, GOOGL, BBAI, SOUN
By: Chris Ciaccia, SA News Editor
18 Comments
 Vertigo3d
Artificial intelligence stocks sank on Thursday as the euphoria surrounding Nvidia (NASDAQ: NVDA) and its strong second-quarter results and guidance faded.
Enterprise software company C3.ai (NYSE: AI) gave up earlier gains and fell nearly 12% in mid-day trading on Thursday, while SoundHound AI ( SOUN) and BigBear.ai Holdings ( BBAI) each lost more than 6%.
Microsoft ( MSFT) shares slipped around 1.4%, while Adobe ( ADBE), which has recently been praised for its AI offerings, lost around 2.5%.
The other mega-cap tech stocks, Google ( GOOG) ( GOOGL) and Amazon ( AMZN), fell 1.4% and 2%, respectively.
The losses weren't just relegated to software stocks as semiconductor stocks lost ground too. AMD ( AMD) shares reversed earlier gains and fell more than 6%, as did Marvell Technology ( MRVL), which is slated to report its own quarterly results after the close of trading.
Broadcom ( AVGO) shares lost around 1%, while Intel ( INTC) and Micron Technology ( MU) also lost ground.
Nvidia ( NVDA) shares were still higher on the day shortly before 12 p.m. EST, though well off the best levels of the session.
A number of analysts praised the company's results and guidance, with some calling the outlook a "guidance for the ages."
In addition to the strong results and outlook, Nvidia ( NVDA) approved an additional $25B share buy back program, adding that it would continue to repurchase stock this fiscal year. |
