{"id":268144,"date":"2025-11-07T16:52:10","date_gmt":"2025-11-07T16:52:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/268144\/"},"modified":"2025-11-07T16:52:10","modified_gmt":"2025-11-07T16:52:10","slug":"tech-stocks-head-for-worst-week-since-april-after-1tn-ai-sell-off","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/268144\/","title":{"rendered":"Tech stocks head for worst week since April after $1tn AI sell-off"},"content":{"rendered":"

Stay informed with free updates<\/p>\n

Simply sign up to the Technology sector myFT Digest — delivered directly to your inbox.<\/p>\n

US tech groups closely tied to the artificial intelligence boom have lost more than $1tn in market value since last Friday, with Wall Street on course for its worst week since President Donald Trump\u2019s \u201cliberation day\u201d tariffs in April. <\/p>\n

The market value of eight of the most valuable AI-related stocks \u2014 including Nvidia, Meta, Palantir and Oracle \u2014 has fallen by $1.03tn since the end of last week. <\/p>\n

Trading on Friday morning deepened tech investors\u2019 losses for the week, with Nvidia<\/a> falling 2.7 per cent in early trading. Microsoft, Amazon, Alphabet and Broadcom also lost ground.<\/p>\n

The declines have left the tech-heavy Nasdaq Composite on course for a weekly loss of 3.9 per cent, its worst five-day run since the index fell 10 per cent after Trump launched his trade war with a blitz of tariff announcements in April.<\/p>\n

Nvidia, the world\u2019s most valuable company, has fallen the most in dollar terms over the week. Its market capitalisation loss is nearly $500bn, little more than a week since it became the first company ever to hit a $5tn valuation.<\/p>\n

Chief executive Jensen Huang told the Financial Times<\/a> this week that he expected China was ultimately \u201cgoing to win the AI race\u201d against the US. <\/p>\n

He subsequently tried to row back on the comments, saying that China was \u201cnanoseconds behind America in AI\u201d. The remarks came as the Silicon Valley chipmaker\u2019s hopes were waning that the US government would allow it to sell a version of its latest Blackwell AI processor to Chinese customers.\u00a0<\/p>\n

Chinese competitors are already narrowing the technical lead held by OpenAI, Microsoft, Google, Meta and Anthropic, which are all making huge investments in AI infrastructure, much of it based on Nvidia\u2019s chips. <\/p>\n

This week\u2019s debut of Beijing-based Moonshot AI\u2019s new Kimi K2 Thinking model was hailed as the latest breakthrough by Chinese developers, with reports suggesting it cost less than $5mn to train.\u00a0<\/p>\n

The release of DeepSeek\u2019s low-cost R1 model sparked a Wall Street panic in January that wiped $589bn from Nvidia\u2019s market value in a single day.\u00a0<\/p>\n

\u201cIs this another DeepSeek moment?\u201d Thomas Wolf, co-founder of AI developer platform Hugging Face, said in a social media post about Kimi. <\/p>\n

Comments this week by OpenAI\u2019s finance chief Sarah Friar that the $500bn AI start-up might look to the US government to provide a funding \u201cbackstop\u201d also triggered speculation about its finances. <\/p>\n

The company\u2019s elaborate web of deals with chipmakers Nvidia, AMD and Broadcom, as well as cloud partnerships with Microsoft, Amazon and Google, mean that much of Big Tech\u2019s expected growth in the coming years is now intertwined with OpenAI\u2019s. <\/p>\n

OpenAI\u2019s chief executive Sam Altman sought to calm anxiety<\/a> in a social media post on Thursday, saying: \u201cWe do not have or want government guarantees for OpenAI data centres.\u201d <\/p>\n

He predicted that OpenAI\u2019s revenues would \u201cgrow to hundreds of billion[s] by 2030\u201d, though that figure may fall below its AI infrastructure commitments, which he said totalled $1.4tn over the next eight years.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the Technology sector myFT Digest — delivered directly to…\n","protected":false},"author":2,"featured_media":268145,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,49,48,61],"class_list":["post-268144","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ca","tag-canada","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/268144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=268144"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/268144\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/268145"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=268144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=268144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=268144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}