Shares of tech companies linked to artificial intelligence (AI) witnessed sharp falls on Monday following calls by AI bosses for a slowdown in the uncontrolled development of the technology. In South Korea, shares of chipmaker SK Hynix fell 6.4% while Samsung Electronics dropped 4.1%. Japan’s Softbank, which is a major investor in OpenAI, plunged more than 10%.Tech stocks in Europe also followed the trend, as Germany’s Infineon, which designs and manufactures semiconductors, was down 7.6%, while Dutch chip giant ASML fell 5.2%.&nbsp;The US stock markets also opened down as investors reacted to the calls from tech bosses to slow down the pace of AI development.The Nasdaq, which is dominated by tech companies, witnessed a big dip in early trading, with shares falling 1.2%.The S&amp;P 500 followed with a drop of 0.7%, while the Dow Jones was down 0.27%.&nbsp;&nbsp;As for individula tech shares, Hewlett Packard was down 10%; Intel and Sandisk by 7%; Qualcomm and Micron by 6%, Oracle 5%, and Nvidia fell 3%.&nbsp;The stocks tumbled after the bosses of Anthropic, OpenAI and SpaceX called for a slowdown in the “reckless” development, citing fears the technology could soon run out of control.The South Korean Kospi stock index, which relies heavily on chip makers that supply AI companies, dropped by 3%.Shares in the big global microchip supplier Taiwan Semiconductor Manufacturing Company dropped 1.2%. Futures for the Nasdaq pointed to a 1.3% drop in the tech-heavy index when the US stock market opens.&nbsp;Also Read: <a href="https://www.wionews.com/world/want-to-reset-ties-with-india-have-engagement-based-on-mutual-interests-says-bangladesh-minister-1789326034045">‘Want to reset ties with India, have engagement based on mutual interests,’ says Bangladesh minister</a><h2>Stocks of firms threatened by rise of AI witness rally</h2>&nbsp;In contrast, there was a rally in shares of companies that have been threatened by the rise of AI, including the advertising group WPP, which rose by 3.1%, and the analytics business Relx, which rose 4.2%.&nbsp;Relx stocks fell sharply earlier this year after Anthropic launched a suite of new data and automation tools.&nbsp;The markets swung after the chief executive of Anthropic, Dario Amodei, appealed for the AI industry to “slow down”.He said that “building too fast is reckless”, warning that a swarm of AI agents could cause hundreds of billions of dollars of damage by “taking over the entire internet” in the future.&nbsp;Also Read: <a href="https://www.wionews.com/world/trump-tells-ukraine-to-stop-targeting-russian-refineries-says-attacks-causing-shortage-of-diesel-1789316749492">Trump tells Ukraine to stop targeting Russian refineries, says attacks causing shortage of diesel</a><h2>Some experts dispute claims of Anthropic’s Dario Amodei</h2>&nbsp;Though some experts disputed Amodei’s claims, investors began to price in a slowdown that would make it harder for the industry to pay for hundreds of billions of dollars in investments in AI infrastructure.&nbsp;OpenAI CEO, Sam Altman, the Google DeepMind chief, Demis Hassabis, and SpaceX boss, Elon Musk, all posted support for Amodei’s essay on slowing AI development, titled “We Must Pace the Frontier”.Altman added that he would match Amodei’s commitment to embedding outside evaluators within his company to verify safety practices.&nbsp;Also Read: <a href="https://www.wionews.com/world/india-condemns-attack-on-merchant-vessel-off-oman-coast-13-indian-crew-rescued-one-missing-1789311950141">India condemns attack on merchant vessel off Oman coast; 13 Indian crew rescued, one missing</a>&nbsp;Fears continue to grow over the hurried pace and lack of regulation in AI development.&nbsp;&nbsp;Meanwhile, China’s top intelligence official has warned that the use of AI by adversaries could pose a risk to the country’s political and social security.Chen Yixin wrote in a government outlet on Sunday that advanced US models such as Anthropic’s Mythos and OpenAI’s GPT-5.5-Cyber could pose serious risks to Beijing’s critical information infrastructure, and called for a comprehensive strengthening of AI security.&nbsp;Conversely, US President Donald Trump rejected the calls to pace AI development. The US president told reporters over the weekend, “We’re leading China in AI. We’re the most sophisticated country in the world and frankly, I want to keep it that way because whoever wins AI, wins.”

In contrast, there was a rally in shares of companies that have been threatened by the rise of AI, including the advertising group WPP, which rose by 3.1%, and the analytics business Relx, which rose 4.2%. Relx stocks fell sharply earlier this year after Anthropic launched a suite of tools.

Shares of tech companies linked to artificial intelligence (AI) witnessed sharp falls on Monday following calls by AI bosses for a slowdown in the uncontrolled development of the technology. In South Korea, shares of chipmaker SK Hynix fell 6.4% while Samsung Electronics dropped 4.1%. Japan’s Softbank, which is a major investor in OpenAI, plunged more than 10%. Tech stocks in Europe also followed the trend, as Germany’s Infineon, which designs and manufactures semiconductors, was down 7.6%, while Dutch chip giant ASML fell 5.2%. The US stock markets also opened down as investors reacted to the calls from tech bosses to slow down the pace of AI development. The Nasdaq, which is dominated by tech companies, witnessed a big dip in early trading, with shares falling 1.2%. The S&P 500 followed with a drop of 0.7%, while the Dow Jones was down 0.27%. As for individula tech shares, Hewlett Packard was down 10%; Intel and Sandisk by 7%; Qualcomm and Micron by 6%, Oracle 5%, and Nvidia fell 3%. The stocks tumbled after the bosses of Anthropic, OpenAI and SpaceX called for a slowdown in the “reckless” development, citing fears the technology could soon run out of control. The South Korean Kospi stock index, which relies heavily on chip makers that supply AI companies, dropped by 3%. Shares in the big global microchip supplier Taiwan Semiconductor Manufacturing Company dropped 1.2%. Futures for the Nasdaq pointed to a 1.3% drop in the tech-heavy index when the US stock market opens. Also Read: ‘Want to reset ties with India, have engagement based on mutual interests,’ says Bangladesh minister Stocks of firms threatened by rise of AI witness rally In contrast, there was a rally in shares of companies that have been threatened by the rise of AI, including the advertising group WPP, which rose by 3.1%, and the analytics business Relx, which rose 4.2%. Relx stocks fell sharply earlier this year after Anthropic launched a suite of new data and automation tools. The markets swung after the chief executive of Anthropic, Dario Amodei, appealed for the AI industry to “slow down”. He said that “building too fast is reckless”, warning that a swarm of AI agents could cause hundreds of billions of dollars of damage by “taking over the entire internet” in the future. Also Read: Trump tells Ukraine to stop targeting Russian refineries, says attacks causing shortage of diesel Some experts dispute claims of Anthropic’s Dario Amodei Though some experts disputed Amodei’s claims, investors began to price in a slowdown that would make it harder for the industry to pay for hundreds of billions of dollars in investments in AI infrastructure. OpenAI CEO, Sam Altman, the Google DeepMind chief, Demis Hassabis, and SpaceX boss, Elon Musk, all posted support for Amodei’s essay on slowing AI development, titled “We Must Pace the Frontier”. Altman added that he would match Amodei’s commitment to embedding outside evaluators within his company to verify safety practices. Also Read: India condemns attack on merchant vessel off Oman coast; 13 Indian crew rescued, one missing Fears continue to grow over the hurried pace and lack of regulation in AI development. Meanwhile, China’s top intelligence official has warned that the use of AI by adversaries could pose a risk to the country’s political and social security. Chen Yixin wrote in a government outlet on Sunday that advanced US models such as Anthropic’s Mythos and OpenAI’s GPT-5.5-Cyber could pose serious risks to Beijing’s critical information infrastructure, and called for a comprehensive strengthening of AI security. Conversely, US President Donald Trump rejected the calls to pace AI development. The US president told reporters over the weekend, “We’re leading China in AI. We’re the most sophisticated country in the world and frankly, I want to keep it that way because whoever wins AI, wins.”

In contrast, there was a rally in shares of companies that have been threatened by the rise of AI, including the advertising group WPP, which rose by 3.1%, and the analytics business Relx, which rose 4.2%. Relx stocks fell sharply earlier this year after Anthropic launched a suite of tools.

Tech stocks fall after AI bosses call for a slowdown in ‘reckless’ progress

AI stocks fell sharply across global markets on Monday after Anthropic CEO Dario Amodei called for a slower pace of frontier AI development. The warning was backed by OpenAI CEO Sam Altman and Elon Musk, creating an unusual show of agreement among major AI leaders.Investors are now questioning what a slowdown could mean for the massive spending on chips, data centres and computing power that has fuelled the AI boom.<h2>AI stocks fall across Asia and Europe</h2> In Asia, SoftBank shares fell about 12% in Tokyo. The company is one of the biggest investors in OpenAI, with a roughly $64.6 billion commitment. South Korea’s AI-linked giants also came under pressure. SK Hynix and Samsung Electronics fell sharply as investors reassessed the outlook for memory chips used in AI infrastructure.The selling spread to Europe. ASML, Infineon and Nokia were among the companies hit, while data-centre suppliers such as Siemens Energy and Schneider Electric also declined. US-listed AI and semiconductor stocks were lower in premarket trading, with Micron, Intel and Nvidia among the major names under pressure.<h2>Why are AI leaders asking to slow down?</h2>The debate intensified after Anthropic researcher Jacob Coxon resigned, saying AI companies were moving too quickly and “gambling with our lives”. Anthropic researcher Evan Hubinger then said he personally estimated there was a greater than 10% chance that AI could “kill all humans” within the next decade. Those are individual risk assessments, not established predictions. Amodei’s response was more focused on controlling the pace of development. In his essay, “We Must Pace the Frontier,” he argued that AI capabilities are advancing quickly enough to create serious risks, including loss of control, cyberattacks and bioterrorism.<h2>Sam Altman says slowdown does not mean stopping</h2>OpenAI’s Sam Altman backed Amodei, saying AI companies need to “pace the frontier”. But Altman stressed that pacing does not mean stopping AI development. He said progress will continue, although it should be slower than it otherwise might be because safety testing and monitoring add costs and time.That distinction matters for investors. A slower development cycle could reduce demand for some new chips and computing capacity. But analysts argue that AI infrastructure demand remains extremely strong, particularly for inference the computing needed to actually run AI models for users. “The pace of change is still going to be vast,” Quilter Cheviot technology researcher Ben Barringer told CNBC, arguing that demand for inference remains greater than available supply. For markets, the immediate question is therefore not whether the AI boom is ending. It is whether the enormous expectations already priced into AI companies can survive a world where the industry deliberately chooses to move more carefully. &nbsp;

AI stocks fell globally after Anthropic CEO Dario Amodei urged a slower pace for frontier AI development, backed by OpenAI’s Sam Altman and Elon Musk. The warnings have raised fresh investor concerns about AI spending, chips and data-centre demand.

AI stocks fell sharply across global markets on Monday after Anthropic CEO Dario Amodei called for a slower pace of frontier AI development. The warning was backed by OpenAI CEO Sam Altman and Elon Musk, creating an unusual show of agreement among major AI leaders. Investors are now questioning what a slowdown could mean for the massive spending on chips, data centres and computing power that has fuelled the AI boom. AI stocks fall across Asia and Europe In Asia, SoftBank shares fell about 12% in Tokyo. The company is one of the biggest investors in OpenAI, with a roughly $64.6 billion commitment. South Korea’s AI-linked giants also came under pressure. SK Hynix and Samsung Electronics fell sharply as investors reassessed the outlook for memory chips used in AI infrastructure. The selling spread to Europe. ASML, Infineon and Nokia were among the companies hit, while data-centre suppliers such as Siemens Energy and Schneider Electric also declined. US-listed AI and semiconductor stocks were lower in premarket trading, with Micron, Intel and Nvidia among the major names under pressure. Why are AI leaders asking to slow down? The debate intensified after Anthropic researcher Jacob Coxon resigned, saying AI companies were moving too quickly and “gambling with our lives”. Anthropic researcher Evan Hubinger then said he personally estimated there was a greater than 10% chance that AI could “kill all humans” within the next decade. Those are individual risk assessments, not established predictions. Amodei’s response was more focused on controlling the pace of development. In his essay, “We Must Pace the Frontier,” he argued that AI capabilities are advancing quickly enough to create serious risks, including loss of control, cyberattacks and bioterrorism. Sam Altman says slowdown does not mean stopping OpenAI’s Sam Altman backed Amodei, saying AI companies need to “pace the frontier”. But Altman stressed that pacing does not mean stopping AI development. He said progress will continue, although it should be slower than it otherwise might be because safety testing and monitoring add costs and time. That distinction matters for investors. A slower development cycle could reduce demand for some new chips and computing capacity. But analysts argue that AI infrastructure demand remains extremely strong, particularly for inference the computing needed to actually run AI models for users. “The pace of change is still going to be vast,” Quilter Cheviot technology researcher Ben Barringer told CNBC, arguing that demand for inference remains greater than available supply. For markets, the immediate question is therefore not whether the AI boom is ending. It is whether the enormous expectations already priced into AI companies can survive a world where the industry deliberately chooses to move more carefully.

AI stocks fell globally after Anthropic CEO Dario Amodei urged a slower pace for frontier AI development, backed by OpenAI’s Sam Altman and Elon Musk. The warnings have raised fresh investor concerns about AI spending, chips and data-centre demand.

SoftBank, Samsung, Nvidia stocks fall as AI CEOs urge slower development

Foreign investors continued to pull money out of Asian equities in July, marking the ninth consecutive month of net selling across seven major Asian markets. Investors sold a net $25.5 billion worth of stocks, with the sell-off concentrated in technology-heavy markets such as Taiwan and South Korea.

Taiwan accounted for nearly $23 billion of the July outflows, while South Korea saw another $6.3 billion leave its equity market. Concerns over AI-related spending, cash burn, semiconductor demand and the sustainability of corporate growth have weighed on investor sentiment.

Amid the broader regional sell-off, India stood out by attracting $2.1 billion in foreign inflows in July. Thailand also recorded strong inflows, while Indonesia and the Philippines saw smaller gains.

Asian Markets Face $25.5 Billion Foreign Outflow as Taiwan, South Korea Lead Tech Sell-Off

Donald Trump claimed that newly declassified intelligence reveals China compromised millions of U.S. voter records and exposed vulnerabilities in America's election infrastructure. The announcement comes as the U.S. launches a sixth consecutive night of strikes on Iranian military targets, while tensions continue to rise across West Asia. CENTCOM also intensified maritime operations near Iran as Ukraine reported deadly Russian missile strikes on Odesa. Meanwhile, North Korea pledged stronger ties with China, SpaceX aborted its latest Starship launch seconds before liftoff, and Japan's stock market plunged amid growing concerns over the AI sector.

Stay tuned for the latest international developments, geopolitical updates, defence news, breaking headlines, and global affairs.

Trump claims China hacked U.S. election data | U.S. strikes Iran again | Starship launch aborted 

IBM shares plunged 25% in their steepest single-day decline since 1968 after the company issued a preliminary earnings warning that fell short of Wall Street expectations. The sharp selloff wiped out more than $100 billion in market value and erased much of the company's AI-driven gains from earlier this year.

IBM blamed weaker-than-expected results on a global memory chip shortage, saying customers redirected spending toward AI servers, storage, and memory hardware instead of software and mainframes. The warning also weighed on the broader technology sector, with software stocks declining while chipmakers and storage companies gained as investors shifted toward AI infrastructure.

IBM shares plunge 25% after shock earnings warning, ai chip shortage hits software demand

Artificial intelligence is fueling one of the biggest investment waves in modern history, with AI-focused companies attracting staggering valuations and reshaping global markets.

But as billions pour into the sector and investors chase the next AI giant, questions are growing over whether the industry is witnessing a genuine technological revolution—or the formation of a massive financial bubble. Is the AI boom sustainable, or are markets getting ahead of reality?

Trillion-dollar AI Boom: Bubble or Breakthrough?

The Iran conflict is rapidly redrawing the global investment landscape, creating distinct market winners and losers as investors reposition around energy shocks, geopolitical risk and defensive assets. An analysis of global markets shows oil producers, defence-linked sectors, AI-driven technology stocks and the US dollar benefiting from the crisis, while airlines, energy-importing economies and vulnerable currencies face mounting pressure.&nbsp;Oil prices have risen sharply amid fears of supply disruptions across the Middle East, with investors closely monitoring shipping activity through the Strait of Hormuz, one of the world’s most important routes for crude exports. Reuters reported that oil prices have climbed by roughly 40 per cent since the conflict escalated, dramatically altering expectations around inflation, interest rates and global growth. In physical markets, crude has remained well above $100 a barrel and, at one stage in early April, briefly traded at nearly twice its pre-war level. The surge has strengthened oil-exporting economies and energy companies, while sharply increasing operating costs for sectors heavily dependent on fuel, particularly aviation and logistics. Although a record 400-million-barrel release from strategic petroleum reserves by major economies, along with alternative sourcing by traders, has softened some supply pressures, strain across the global energy system continues to intensify.&nbsp;ALSO READ:&nbsp;<a href="https://www.wionews.com/science/ai-beats-human-forecasters-in-tournament-predicting-outcomes-for-30-tech-ventures-1779875686948">AI beats human forecasters in tournament predicting fate of 30 technology startups</a>&nbsp;Reuters also noted that airlines have come under pressure from both higher fuel costs and disruptions to regional airspace. Earlier this month, Air India temporarily suspended select international routes due to rising aviation turbine fuel (ATF) prices and airspace restrictions, while increasing international fuel surcharges by $10 to $50 per passenger. IndiGo also introduced a fresh fuel surcharge as escalating oil prices pushed operating costs higher. Several carriers have been forced to reroute or suspend flights across parts of the Gulf region, adding operational strain at a time when fuel prices are already climbing.&nbsp;<h2>AI and defence stocks emerge among strongest gainers</h2><h2>&nbsp;</h2>Despite the broader geopolitical uncertainty, investors have continued pouring capital into artificial intelligence-linked companies, particularly large US technology firms. Reportedly, AI-related stocks have remained resilient even as wider market volatility increased, reinforcing their position as a dominant force in global equity markets.&nbsp;South Korea’s SK Hynix crossed the $1 trillion market valuation mark for the first time on Wednesday, joining memory chip rivals Samsung Electronics and Micron Technology as surging investor demand for AI-linked semiconductor stocks continued to drive gains across the global chip sector, Reuters reported.&nbsp;ALSO READ:&nbsp;<a href="https://www.wionews.com/world/hong-kong-dethrones-switzerland-as-global-cross-border-wealth-capital-report-shows-1779867448139">Hong Kong dethrones Switzerland as global cross-border wealth capital, report shows</a> Defence and cybersecurity firms have also attracted stronger investor interest amid rising security concerns and expectations of increased military spending globally. At the same time, traditional safe-haven assets including the US dollar and gold have strengthened as investors seek protection from geopolitical instability. The report suggests markets are increasingly splitting into sectors that benefit from prolonged instability and those exposed to inflation, fuel dependency and weakening trade conditions.&nbsp;<h2>Fashion and luxury sector</h2> The global luxury sector is entering a phase of stabilisation rather than contraction, according to Kearney’s 2026 Global Luxury Industry Outlook, which projects market growth of 2–4 per cent this year, lower than broader industry forecasts of 3–5 per cent. The report says luxury brands are navigating slower demand, changing consumer behaviour and persistent economic uncertainty, with growth expected to diverge sharply across regions, product segments and buyer demographics.&nbsp;ALSO READ:&nbsp; <a href="https://www.wionews.com/world/why-trump-s-abraham-accords-push-is-a-non-starter-and-what-s-driving-it-1779805064408">Why Trump’s Abraham Accords push is a non-starter and what’s driving it?</a>&nbsp;&nbsp;<h2>Emerging economies and airlines face growing strain</h2><h2>&nbsp;</h2>The economic pressure is particularly visible in energy-importing regions across Asia and parts of Europe, where rising oil costs threaten to intensify inflation and weaken currencies. Reuters highlighted that Asian currencies and bond markets have faced renewed stress as investors move capital towards safer assets.&nbsp;Meanwhile, the conflict is reinforcing a wider global market divide. Oil exporters, AI-driven technology firms and safe-haven assets continue attracting flows, while sectors dependent on cheap energy and stable trade routes face mounting uncertainty. The result is an increasingly polarised market environment shaped as much by geopolitics as by economic fundamentals. &nbsp;

An analysis of global markets shows oil producers, defence-linked sectors, AI-driven technology stocks and the US dollar benefiting from the crisis, while airlines, energy-importing economies and vulnerable currencies face mounting pressure.

The Iran conflict is rapidly redrawing the global investment landscape, creating distinct market winners and losers as investors reposition around energy shocks, geopolitical risk and defensive assets. An analysis of global markets shows oil producers, defence-linked sectors, AI-driven technology stocks and the US dollar benefiting from the crisis, while airlines, energy-importing economies and vulnerable currencies face mounting pressure. Oil prices have risen sharply amid fears of supply disruptions across the Middle East, with investors closely monitoring shipping activity through the Strait of Hormuz, one of the world’s most important routes for crude exports. Reuters reported that oil prices have climbed by roughly 40 per cent since the conflict escalated, dramatically altering expectations around inflation, interest rates and global growth. In physical markets, crude has remained well above $100 a barrel and, at one stage in early April, briefly traded at nearly twice its pre-war level. The surge has strengthened oil-exporting economies and energy companies, while sharply increasing operating costs for sectors heavily dependent on fuel, particularly aviation and logistics. Although a record 400-million-barrel release from strategic petroleum reserves by major economies, along with alternative sourcing by traders, has softened some supply pressures, strain across the global energy system continues to intensify. ALSO READ: AI beats human forecasters in tournament predicting fate of 30 technology startups Reuters also noted that airlines have come under pressure from both higher fuel costs and disruptions to regional airspace. Earlier this month, Air India temporarily suspended select international routes due to rising aviation turbine fuel (ATF) prices and airspace restrictions, while increasing international fuel surcharges by $10 to $50 per passenger. IndiGo also introduced a fresh fuel surcharge as escalating oil prices pushed operating costs higher. Several carriers have been forced to reroute or suspend flights across parts of the Gulf region, adding operational strain at a time when fuel prices are already climbing. AI and defence stocks emerge among strongest gainers Despite the broader geopolitical uncertainty, investors have continued pouring capital into artificial intelligence-linked companies, particularly large US technology firms. Reportedly, AI-related stocks have remained resilient even as wider market volatility increased, reinforcing their position as a dominant force in global equity markets. South Korea’s SK Hynix crossed the $1 trillion market valuation mark for the first time on Wednesday, joining memory chip rivals Samsung Electronics and Micron Technology as surging investor demand for AI-linked semiconductor stocks continued to drive gains across the global chip sector, Reuters reported. ALSO READ: Hong Kong dethrones Switzerland as global cross-border wealth capital, report shows Defence and cybersecurity firms have also attracted stronger investor interest amid rising security concerns and expectations of increased military spending globally. At the same time, traditional safe-haven assets including the US dollar and gold have strengthened as investors seek protection from geopolitical instability. The report suggests markets are increasingly splitting into sectors that benefit from prolonged instability and those exposed to inflation, fuel dependency and weakening trade conditions. Fashion and luxury sector The global luxury sector is entering a phase of stabilisation rather than contraction, according to Kearney’s 2026 Global Luxury Industry Outlook, which projects market growth of 2–4 per cent this year, lower than broader industry forecasts of 3–5 per cent. The report says luxury brands are navigating slower demand, changing consumer behaviour and persistent economic uncertainty, with growth expected to diverge sharply across regions, product segments and buyer demographics. ALSO READ: Why Trump’s Abraham Accords push is a non-starter and what’s driving it? Emerging economies and airlines face growing strain The economic pressure is particularly visible in energy-importing regions across Asia and parts of Europe, where rising oil costs threaten to intensify inflation and weaken currencies. Reuters highlighted that Asian currencies and bond markets have faced renewed stress as investors move capital towards safer assets. Meanwhile, the conflict is reinforcing a wider global market divide. Oil exporters, AI-driven technology firms and safe-haven assets continue attracting flows, while sectors dependent on cheap energy and stable trade routes face mounting uncertainty. The result is an increasingly polarised market environment shaped as much by geopolitics as by economic fundamentals.

An analysis of global markets shows oil producers, defence-linked sectors, AI-driven technology stocks and the US dollar benefiting from the crisis, while airlines, energy-importing economies and vulnerable currencies face mounting pressure.

Oil spikes, airlines stumble, AI stocks soar: The sectors gaining and losing most from the Iran war

The artificial intelligence boom, fuelled by the overvaluation of AI stocks and heavy promotion by experts, industry insiders, and investors like Bill Gates, is beginning to crack. Soaring computing costs are not matching returns on investment (ROI). Experts now warn that we are living in an era much like the dot-com bubble of the late 1990s, which burst at the start of this millennium. Will the AI crash hit in 2026? Who will survive it? Here's what you should know.Also read: <a href="https://www.wionews.com/business-economy/nvidia-to-resume-h20-ai-chip-sales-to-china-following-us-policy-reversal-1752578149833">Nvidia to resume H20 AI chip sales to China following US policy reversal</a><h2>AI boom is starting to crack – AI stocks are already falling</h2>Between 2020 and 2025, the AI sector attracted enormous media attention and capital. The frenzy drew comparisons to the dot-com boom. But recent developments suggest that this period of irrational exuberance may soon face a sharp reality check.The stock of AI chip giant Nvidia — the poster child of the AI hardware boom — dropped by nearly 7.4 per cent over two consecutive days. This same stock had surged over 3,000 per cent in recent years. The fall reflects a wave of investor scepticism. CoreWeave, one of Nvidia’s cloud computing partners, lost 33 per cent of its value in just two days, wiping out $24 billion in market capitalisation.<h2>What triggered fears of an AI industry collapse?</h2>A mix of disappointing AI product updates and poor business returns has raised concerns. The underwhelming response to GPT-5, the latest iteration of ChatGPT, is one example. But the bigger shock came from a recent MIT study that found 95 per cent of enterprise generative AI projects had delivered no measurable return on investment.<h2>What the MIT study revealed about AI startups</h2>The MIT study analysed 300 enterprise AI initiatives, conducted 150 executive interviews, and surveyed 350 employees. It found that only 5 per cent of new AI deployments had delivered tangible business value. Many initiatives were misaligned with actual business needs, prioritising flashy features over cost-saving or efficiency—supposedly AI’s core strengths. Internally developed systems failed more often than vendor-supplied solutions, suggesting poor planning, integration, and execution in many companies.<h2>Sam Altman and others warn of overvaluation</h2>Recently, Sam Altman, CEO of OpenAI, publicly compared today’s AI fervour to the dot-com bubble. He warned of "overexuberant investment."Torsten Sløk of Apollo Global Management added that AI valuations are “more extreme than during the dot-com era,” with vastly greater speculative capital at risk.Also read: <a href="https://www.wionews.com/world/-chatgpt-hallucinates-don-t-over-rely-on-it-openai-ceo-sam-altman-warns-users-1751366853229">‘ChatGPT ‘hallucinates’, don’t overrely on it,’ OpenAI CEO Sam Altman warns users</a>&nbsp;<h2>Valuations far exceed real earnings</h2>AI companies are being valued at levels far above their actual revenue. OpenAI is reportedly valued at $157 billion — roughly 40 times its estimated annual income. Anthropic is targeting a 50× valuation. Deutsche Bank has warned that these levels are unsustainable and a sharp correction is likely.Also read: <a href="https://www.wionews.com/photos/how-will-openai-s-gpt-5-change-the-way-you-use-chatgpt-1754649832228">How will OpenAI’s GPT-5 change the way you use ChatGPT?</a><h2>Computing and infrastructure costs could make ai startups unviable</h2>AI model training requires immense computing resources. Models like GPT-4 cost around $100 million to train. Since 2016, training costs have doubled approximately every year.Environmental and infrastructure costs are also climbing. GPT-4 consumed around 50 GWh of energy during training. Water usage by AI data centres is projected to exceed 6.6 billion cubic metres per year by 2027—more than half of the UK’s annual water use.&nbsp;<a href="https://www.wionews.com/videos/shared-chatgpt-links-publicly-visible-in-google-search-1754072068804/embed">https://www.wionews.com/videos/shared-chatgpt-links-publicly-visible-in-google-search-1754072068804/embed</a><h2>Will the AI bust mirror the dot-com crash?</h2>A Financial Times analysis suggests that while a market shake-up is likely, today’s Big Tech firms—Amazon, Google, Microsoft—are built on strong earnings and operational capacity. They are better positioned to survive a downturn. The firms most at risk are small or mid-sized startups without deep financial reserves or real-world utility.<h2>Real-world use, not novelty, will determine survival</h2>As Bret Taylor, chairman of OpenAI, put it, only companies that deliver "real-world use" will persist. He noted that after the dot-com crash of 2000–2001, only those offering genuine utility, like Google and Amazon, survived.The AI boom may not be over, but it is entering a phase of correction and realism. The most optimistic view is that any “apocalypse” will ultimately consolidate the sector, leaving only a few serious players with sustainable models and deep pockets. &nbsp;

The Artificial Intelligence or AI industry is seeing a looming bust, similar to the dot-com crash. A recent study found that 95 per cent of generative AI pilots failed to deliver return on investment. Who will survive the crash?

The artificial intelligence boom, fuelled by the overvaluation of AI stocks and heavy promotion by experts, industry insiders, and investors like Bill Gates, is beginning to crack. Soaring computing costs are not matching returns on investment (ROI). Experts now warn that we are living in an era much like the dot-com bubble of the late 1990s, which burst at the start of this millennium. Will the AI crash hit in 2026? Who will survive it? Here's what you should know. Also read: Nvidia to resume H20 AI chip sales to China following US policy reversal AI boom is starting to crack – AI stocks are already falling Between 2020 and 2025, the AI sector attracted enormous media attention and capital. The frenzy drew comparisons to the dot-com boom. But recent developments suggest that this period of irrational exuberance may soon face a sharp reality check. The stock of AI chip giant Nvidia — the poster child of the AI hardware boom — dropped by nearly 7.4 per cent over two consecutive days. This same stock had surged over 3,000 per cent in recent years. The fall reflects a wave of investor scepticism. CoreWeave, one of Nvidia’s cloud computing partners, lost 33 per cent of its value in just two days, wiping out $24 billion in market capitalisation. What triggered fears of an AI industry collapse? A mix of disappointing AI product updates and poor business returns has raised concerns. The underwhelming response to GPT-5, the latest iteration of ChatGPT, is one example. But the bigger shock came from a recent MIT study that found 95 per cent of enterprise generative AI projects had delivered no measurable return on investment. What the MIT study revealed about AI startups The MIT study analysed 300 enterprise AI initiatives, conducted 150 executive interviews, and surveyed 350 employees. It found that only 5 per cent of new AI deployments had delivered tangible business value. Many initiatives were misaligned with actual business needs, prioritising flashy features over cost-saving or efficiency—supposedly AI’s core strengths. Internally developed systems failed more often than vendor-supplied solutions, suggesting poor planning, integration, and execution in many companies. Sam Altman and others warn of overvaluation Recently, Sam Altman, CEO of OpenAI, publicly compared today’s AI fervour to the dot-com bubble. He warned of "overexuberant investment." Torsten Sløk of Apollo Global Management added that AI valuations are “more extreme than during the dot-com era,” with vastly greater speculative capital at risk. Also read: ‘ChatGPT ‘hallucinates’, don’t overrely on it,’ OpenAI CEO Sam Altman warns users Valuations far exceed real earnings AI companies are being valued at levels far above their actual revenue. OpenAI is reportedly valued at $157 billion — roughly 40 times its estimated annual income. Anthropic is targeting a 50× valuation. Deutsche Bank has warned that these levels are unsustainable and a sharp correction is likely. Also read: How will OpenAI’s GPT-5 change the way you use ChatGPT? Computing and infrastructure costs could make ai startups unviable AI model training requires immense computing resources. Models like GPT-4 cost around $100 million to train. Since 2016, training costs have doubled approximately every year. Environmental and infrastructure costs are also climbing. GPT-4 consumed around 50 GWh of energy during training. Water usage by AI data centres is projected to exceed 6.6 billion cubic metres per year by 2027—more than half of the UK’s annual water use. https://www.wionews.com/videos/shared-chatgpt-links-publicly-visible-in-google-search-1754072068804/embed Will the AI bust mirror the dot-com crash? A Financial Times analysis suggests that while a market shake-up is likely, today’s Big Tech firms—Amazon, Google, Microsoft—are built on strong earnings and operational capacity. They are better positioned to survive a downturn. The firms most at risk are small or mid-sized startups without deep financial reserves or real-world utility. Real-world use, not novelty, will determine survival As Bret Taylor, chairman of OpenAI, put it, only companies that deliver "real-world use" will persist. He noted that after the dot-com crash of 2000–2001, only those offering genuine utility, like Google and Amazon, survived. The AI boom may not be over, but it is entering a phase of correction and realism. The most optimistic view is that any “apocalypse” will ultimately consolidate the sector, leaving only a few serious players with sustainable models and deep pockets.

What we're covering here: &nbsp;The Artificial Intelligence or AI industry is seeing a looming bust, similar to the dot-com crash. A recent study found that 95 per cent of generative AI pilots failed to deliver return on investment. Who will survive the crash?

AI APOCALYPSE is coming: The bubble of overvalued stocks, underperforming apps will burst soon, but who will survive?

Samsung Electronics reported a sharp rise in its second-quarter operating profit Friday, attributing this to the recovery of semiconductor prices buoyed by the boom in the field of artificial intelligence. The company estimated that its operating profit for the quarter ended June 30 sharply rose over 15 times, reaching 10.4 trillion won ($7.54 billion) vis-a-vis 670 billion won last year.

That outperformed the 8.8 trillion won consensus estimate from LSEG SmartEstimate, which is a weighted average of the most reliable analysts' projections. It was the most profitable quarter for the company since the third quarter of 2022.

The revenue probably surged about 23 per cent year-on-year to 74 trillion won during the quarter, Samsung said.

The semiconductor business, its crown jewel and the biggest contributor to its overall performance, likely posted a second consecutive quarterly profit. That would be an improvement from the first quarter, as analysts expect memory chip prices to continue their rebound from a slump extended from mid-2022 to the last half of 2023, hit by soft post-pandemic demand for gadgets using these chips.

Analysts also pointed out that increased demand for high-end DRAM chips, especially for high-bandwidth memory (HCM) chips used in artificial intelligence (AI) chipsets, and chips used in data centre servers and AI-powered gadgets, has been causing the rise in prices for the chips.

For instance, DRAM chip prices in the second quarter have risen 13-18 per cent compared with the previous quarter, according to TrendForce. Meanwhile, NAND Flash chips, used for data storage functions, saw price increases of 15-20 per cent in the second quarter.

This is, of course, driven by demand for artificial intelligence technologies that are greatly in demand and positions Samsung well within the global market for semiconductors.

Samsung Electronics reported a sharp rise in its second-quarter operating profit Friday, attributing this to the recovery of semiconductor prices buoyed by the boom in the field of artificial intelligence.

Samsung Electronics reported a sharp rise in its second-quarter operating profit Friday, attributing this to the recovery of semiconductor prices buoyed by the boom in the field of artificial intelligence. The company estimated that its operating profit for the quarter ended June 30 sharply rose over 15 times, reaching 10.4 trillion won ($7.54 billion) vis-a-vis 670 billion won last year. That outperformed the 8.8 trillion won consensus estimate from LSEG SmartEstimate, which is a weighted average of the most reliable analysts' projections. It was the most profitable quarter for the company since the third quarter of 2022. The revenue probably surged about 23 per cent year-on-year to 74 trillion won during the quarter, Samsung said. The semiconductor business, its crown jewel and the biggest contributor to its overall performance, likely posted a second consecutive quarterly profit. That would be an improvement from the first quarter, as analysts expect memory chip prices to continue their rebound from a slump extended from mid-2022 to the last half of 2023, hit by soft post-pandemic demand for gadgets using these chips. Analysts also pointed out that increased demand for high-end DRAM chips, especially for high-bandwidth memory (HCM) chips used in artificial intelligence (AI) chipsets, and chips used in data centre servers and AI-powered gadgets, has been causing the rise in prices for the chips. For instance, DRAM chip prices in the second quarter have risen 13-18 per cent compared with the previous quarter, according to TrendForce. Meanwhile, NAND Flash chips, used for data storage functions, saw price increases of 15-20 per cent in the second quarter. This is, of course, driven by demand for artificial intelligence technologies that are greatly in demand and positions Samsung well within the global market for semiconductors.

Samsung's profits skyrocket as chip price rises on strong AI demand

AI-driven tech rally continues its dream run in June. The month witnessed Nvidia briefly overtaking Microsoft to become the most valuable company in the world. Nvidia's shares surged 27 per cent in June, boosting its market value to over $3.3 trillion. It was, however, followed by a $430 billion slump.

Microsoft's market value increased by 7.6 per cent, while that of Apple surged 9.6 per cent over the past month. Amazon recently became the fifth company to cross the $2 trillion mark. All these big tech firms are riding high on the AI boom.

Investors are betting on AI as the future of work, and this has got all the big tech firms working overtime. Countries are ready to escalate trade tensions as they look to protect their AI technologies. This highlights the geopolitical importance of winning in the AI race.&nbsp;

Broadcom's market value also jumped 20 per cent in June after increasing its annual revenue forecast for AI-related chips by 10 per cent. 7 out of 10 top companies in the world are tech-related. <a href="https://www.wionews.com/business-economy/global-markets-roundup-tech-rally-leads-global-markets-in-2024-736244">Global stocks have also hit record highs</a> amid the AI rally.&nbsp;

Despite the flight, analysts are looking at potential gaps. Some point to the fact that only the top AI firms are winning, while competition in the mid-range is heating up. This is leading to uneven growth and winning for a few big tech firms. However, analysts at Morgan Stanley point to the exponential growth observed within the top 500 stocks.

AI-driven tech rally continues its dream run in June. The month witnessed Nvidia briefly overtaking Microsoft to become the most valuable company in the world. Nvidia's shares surged 27 per cent in June, boosting its market value to over $3.

AI-driven tech rally continues its dream run in June. The month witnessed Nvidia briefly overtaking Microsoft to become the most valuable company in the world. Nvidia's shares surged 27 per cent in June, boosting its market value to over $3.3 trillion. It was, however, followed by a $430 billion slump. Microsoft's market value increased by 7.6 per cent, while that of Apple surged 9.6 per cent over the past month. Amazon recently became the fifth company to cross the $2 trillion mark. All these big tech firms are riding high on the AI boom. Investors are betting on AI as the future of work, and this has got all the big tech firms working overtime. Countries are ready to escalate trade tensions as they look to protect their AI technologies. This highlights the geopolitical importance of winning in the AI race. Broadcom's market value also jumped 20 per cent in June after increasing its annual revenue forecast for AI-related chips by 10 per cent. 7 out of 10 top companies in the world are tech-related. Global stocks have also hit record highs amid the AI rally. Despite the flight, analysts are looking at potential gaps. Some point to the fact that only the top AI firms are winning, while competition in the mid-range is heating up. This is leading to uneven growth and winning for a few big tech firms. However, analysts at Morgan Stanley point to the exponential growth observed within the top 500 stocks.

AI-focused firms see big jump in Market cap in June

Shares of Nvidia jumped 5 per cent on Tuesday after a 3-day slump that wiped off $430 billion from its market valuation. The tumble saw them lose around 13 per cent since the July 18 high. The drop followed a rally that accelerated after a 10-for-1 stock split. The drop also prompted speculations&nbsp;about a potential 'bubble' that could burst sooner or later.

Nvidia's shares, which last week momentarily overtook Apple as the most valuable business in the world, are up 152 per cent this year and made up about 30 per cent of the S&amp;P 500's year-to-date return. This year, the index is up 14.6 per cent.

Though the recent decline in the share price of the company seems to have made traders more cautious, there was clear bullishness surrounding Nvidia in the options market.

Surging demand for AI technology has significantly benefited Nvidia. The company holds an almost 80 per cent share of the AI chip market, particularly in data centres. Their H100 accelerators facilitate complex AI computations, resulting in a revenue increase exceeding 125 per cent year-over-year. This trend continued last quarter, with Nvidia's data centre business experiencing a 427 per cent growth, generating $22.6 billion.

Analysts like Daniel Ives of Wedbush Securities estimate that Nvidia, Apple, and Microsoft are in a fierce competition to be the first companies in the technology sector to reach a $4 trillion market cap. With AI skills, each is delving deeply into its competitive advantages in an effort to win over investors.&nbsp;

Shares of Nvidia jumped 5 per cent on Tuesday after a 3-day slump that wiped off $430 billion from its market valuation. The tumble saw them lose around 13 per cent since the July 18 high.

Shares of Nvidia jumped 5 per cent on Tuesday after a 3-day slump that wiped off $430 billion from its market valuation. The tumble saw them lose around 13 per cent since the July 18 high. The drop followed a rally that accelerated after a 10-for-1 stock split. The drop also prompted speculations about a potential 'bubble' that could burst sooner or later. Nvidia's shares, which last week momentarily overtook Apple as the most valuable business in the world, are up 152 per cent this year and made up about 30 per cent of the S&P 500's year-to-date return. This year, the index is up 14.6 per cent. Though the recent decline in the share price of the company seems to have made traders more cautious, there was clear bullishness surrounding Nvidia in the options market. Surging demand for AI technology has significantly benefited Nvidia. The company holds an almost 80 per cent share of the AI chip market, particularly in data centres. Their H100 accelerators facilitate complex AI computations, resulting in a revenue increase exceeding 125 per cent year-over-year. This trend continued last quarter, with Nvidia's data centre business experiencing a 427 per cent growth, generating $22.6 billion. Analysts like Daniel Ives of Wedbush Securities estimate that Nvidia, Apple, and Microsoft are in a fierce competition to be the first companies in the technology sector to reach a $4 trillion market cap. With AI skills, each is delving deeply into its competitive advantages in an effort to win over investors.

Nvidia shares rebound after $430 billion market slump

Big tech's AI profits loom over S&P 500. The ability of the largest tech companies to turn their investments in artificial intelligence into even greater profits will determine the fate of the S&P 500.

Outlook for investors betting on AI | World Business Watch

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