{"id":938252,"date":"2026-10-19T01:24:15","date_gmt":"2026-10-19T01:24:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/938252\/"},"modified":"2026-10-19T01:24:15","modified_gmt":"2026-10-19T01:24:15","slug":"just-another-scare-wall-street-sees-the-ai-trade-strong-despite-techs-latest-rout","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/938252\/","title":{"rendered":"‘Just another scare’: Wall Street sees the AI trade strong despite tech’s latest rout"},"content":{"rendered":"\n

Technology (XLK<\/a>) took a hit this week as financing concerns mounted, dragging down key AI trade players and sending the S&P 500 (^GSPC<\/a>) and Nasdaq (^IXIC<\/a>) into negative territory\u00a0for the week. <\/p>\n

CoreWeave (CRWV<\/a>) and peer Nebius (NBIS<\/a>) both closed out the week down more than 25%.<\/a> Those companies along with Oracle (ORCL<\/a>) are “probably at the bottom” of tech on free cash flow, noted Baird tech strategist Ted Mortonson on Yahoo Finance<\/a> last week. <\/p>\n

Mortonson pointed to “a higher cost of capital” and “a lot of scrutiny now on circular finance.” <\/p>\n

Nvidia (NVDA<\/a>) CEO Jensen Huang sought to ease concerns<\/a>, expressing optimism about CoreWeave. Nvidia’s backing is significant<\/a>, given that the AI chip giant holds roughly a 10% stake in the neocloud provider. <\/p>\n

Others on Wall Street echoed the sentiment. <\/p>\n

“I see this is just another scare, right<\/a>? We had DeepSeek, we had tariff crash, we had AI death scare,” Moor Insights & Strategy founder and chief analyst Patrick Moorhead told Yahoo Finance. <\/p>\n

“Because the numbers are up so big on the AI trade, people are looking for a reason to sell as opposed to a reason to buy,” he added. <\/p>\n

183.47 -5.72 (-3.02%) <\/p>\n

At close: October 16 at 4:00:00 PM EDT <\/p>\n

185.77 +2.30 (+1.25%) <\/p>\n

Overnight: 9:18:42 PM EDT <\/p>\n

XLK ^GSPC <\/p>\n

Dan Ives, senior managing director at Wedbush Securities, called the sell-off the “same script, different cast,” noting that CoreWeave exited the second quarter with a revenue backlog of roughly $104 billion, reflecting customer commitments already in place. <\/p>\n

“We view this as AI infrastructure’s SaaSpocalypse moment and expect the same outcome,” he said, referring to the software sell-off earlier this year sparked by fears of AI-driven disruption. <\/p>\n

Meanwhile, commentary from chip equipment maker ASML (ASML<\/a>) and contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSM<\/a>) pointed to robust AI demand.<\/a> <\/p>\n

\"Meta<\/a> Meta data centers operate, Saturday, Sept. 5, 2026, near Social Circle, Ga. (AP Photo\/Mike Stewart) \u00b7 AP Photo\/Mike Stewart <\/p>\n

UBS strategists characterized the latest bout of volatility as more of a “recalibration of expectations” than a fundamental break in the AI investment story. <\/p>\n

“We suggest investors focus on where AI spending is translating into sustainable earnings growth and broader enterprise and consumer adoption,” wrote Ulrike Hoffmann-Burchardi, chief investment officer of Americas and global head of equities at UBS. <\/p>\n

Ines Ferre is a senior business reporter for Yahoo Finance. <\/p>\n

Click here for an in-depth analysis of the latest stock market news and events moving stock prices<\/a> <\/p>\n

Read the latest financial and business news from Yahoo Finance<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"Technology (XLK) took a hit this week as financing concerns mounted, dragging down key AI trade players and…\n","protected":false},"author":2,"featured_media":938253,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[15261,62,276,277,45,161,49,48,46,133,1828,1829,74172,1830,1831,39783,8123,131,2519,968,1705,2511,1832,1833,176,74173,3322,61,74174],"class_list":["post-938252","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-401k","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-business","tag-business-news","tag-ca","tag-canada","tag-economy","tag-finance","tag-financial-information","tag-investing","tag-investment-tools","tag-investor","tag-market-news","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-technology","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/938252","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=938252"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/938252\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/938253"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=938252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=938252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=938252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}