Tech Stocks Lose £750bn as AI Bubble Fears Intensify
US technology stocks are heading for their worst weekly performance since April, with AI-focused companies losing over £750 billion in market value amid growing concerns about an artificial intelligence bubble.
Key Market Movements
- Nasdaq index down 5% this week
- Nvidia loses £350bn in market value
- Meta shares fall 9%, Palantir drops 12%
- FTSE 100 declines 0.6% to 9682.57
The tech-heavy Nasdaq index was on track for a 5% weekly decline by mid-session, marking the worst performance since Donald Trump’s ‘Liberation Day’ tariffs disrupted markets in April.
Major Companies Hit Hard
Chip designer Nvidia, the world’s largest publicly traded company, saw nearly £350 billion wiped off its market capitalization with a 10% weekly decline. Other significant losers included Facebook-owner Meta, down 9%, and Palantir, the controversial tech firm with White House connections, which fell almost 12%.
London markets also experienced pressure, with the FTSE 100 declining 0.6% to 9682.57, though weekly losses remained modest at 0.4%.
Analyst Concerns Mount
Market analysts are growing increasingly worried that the estimated £1.1 trillion being invested in the AI sector this year may not deliver expected returns, potentially leaving investors facing significant losses as the AI enthusiasm shows signs of fading.
