Tech stocks fell on Monday amid a broader market downturn stemming from renewed US-Iran hostilities and an ongoing debate over artificial intelligence spending and profitability. <\/p>\n
The sector faced waves of rotation last week as investors assessed Big Tech companies’ expected payoff date for their massive investments in the AI build-out. The concern is not only whether hyperscalers will see huge returns from AI, but when that cash will flow<\/a> back to them, as some experts have warned that delayed profits could create risks for the broader market.<\/a> <\/p>\n Meta (META<\/a>) helped alleviate some of the concerns about its rising capital expenditures on Friday by announcing new revenue streams<\/a>, including a cloud business that will sell AI compute and the introduction of its Muse Spark 1.1 AI model. The stock rose nearly 6% on Friday but fell on Monday morning. <\/p>\n The next test for the AI trade comes from Taiwan Semiconductor Manufacturing Company (TSM<\/a>). TSMC, the world’s largest chip foundry, reports quarterly results on Thursday<\/a>. On Monday, TSMC reported that June revenue soared 68%<\/a> year over year, setting the stage for a blowout report, but any surprise on AI demand to the upside or downside could prove to be a catalyst for shares of its customers \u2014 namely Nvidia (NVDA<\/a>). <\/p>\n","protected":false},"excerpt":{"rendered":"Tech stocks fell on Monday amid a broader market downturn stemming from renewed US-Iran hostilities and an ongoing…\n","protected":false},"author":2,"featured_media":583426,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,289,290,18,247888,19,17,185963,78828,10365,82],"class_list":["post-583425","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-eire","tag-expected-payoff","tag-ie","tag-ireland","tag-massive-investments","tag-taiwan-semiconductor-manufacturing-company","tag-tech-stocks","tag-technology"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116913061542413993","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/583425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=583425"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/583425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/583426"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=583425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=583425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=583425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}