Category: general

The post Don’t panic over tech, AI stocks selloff, analysts dismiss fears appeared com. There was a clear change in mood across world markets on Wednesday as tech stocks experienced sharp declines from record highs, and some stretched valuations. Until this week, traders had been happy to overlook warnings, rising prices and doubts about whether the most popular companies had justified the surge in their share prices. Now, the drop has forced investors to reflect on whether the gains had gone too far and too fast. However, even with some large names losing billions in value in a matter of hours, most heavyweight fund managers insisted this was not a full-blown crisis moment, but more of a short wobble after a long winning streak. Experts still favor AI and tech stocks Shares across Asia were sold down for the second day in a row and indices in Seoul and Tokyo were roughly 5% below earlier highs logged only on Tuesday morning. Nasdaq futures were also weaker, even after the US benchmark had already fallen 2% the day before. The names taking the biggest hit were the same stocks that had ridden the boom on the way up. Nvidia, which only a year or two ago was little known outside specialist circles, has since become the most valuable company on the planet due to the AI rush. The company slid nearly 4% on Tuesday, and was around 7% below last month’s top. Palantir, another strong favourite during the boom, fell almost 8% on the day and then slipped a further 3% in after-hours trade. Some managers blamed timing, with the year-end window in sight, there is little incentive to let paper gains reverse if the market begins to swing the wrong way. One investor in Hong Kong said this was more about locking in profits than abandoning AI. Another in Sydney said he was.