The NASDAQ index fell nearly 150 points on Wednesday, extending its negative streak in the indices. Leading stocks such as Tesla, Amazon, Apple, and Google’s Alphabet all bled more than 1% in the day’s session. Tech stocks were among the hardest hit as the sell-off reached its highest point this month.
Tech stocks tumbled as investors showed concerns about the AI technology after MIT Nanda published a survey showing 95% of all AI-based start-ups failed. Only 5% of AI firms are under profit, signaling the sector could be in a bubble. Profits in the AI sector are mostly negligible, leading to doubts about its future prospects. Tesla, Amazon, Apple, and Google’s Alphabet are heavily invested in AI and could affect their stocks.
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What Next For Tesla, Amazon, Apple, and Alphabet Stocks?
The tech stocks are under pressure as the AI sector has intense competition from both small and big players. A few start-ups like Perplexity, among others, are also outgrowing their peers, displaying strength. However, the spotlight firmly remains on Tesla, Amazon, Apple, and Alphabet as billions worth of stocks are traded.
In addition, Investors are rotating out of riskier stocks, fearing a larger crash due to Trump’s trade wars and tariffs. This puts the market in a sticky situation as half the crowd believes tariffs are a bad decision. The development is affecting the balance sheets and revenues of several companies that deal with overseas businesses. Stocks such as Tesla, Amazon, Apple, and Google’s Alphabet remain at the center of it all.
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If the AI sector fails in the coming years, tech stocks like Tesla, Amazon, Apple, and Google would be the first to plunge in value. Taking an entry position now is riskier until the results are finally out. The next few years could seal the fate of the AI sector and the direction it plans to take.