April 16, 2024
Nvidia created an AI bubble, and software stocks are already paying the price

Nvidia created an AI bubble, and software stocks are already paying the price

Nvidia Corp. increased the fervor for artificial intelligence on Wall Street, but plunging software stocks showed Wednesday why betting that the chip maker’s AI revenue will quickly ripple through the rest of the tech sector is a losing proposition.

After Nvidia’s NVDA prediction of record revenue — in part fueled from AI — led to strong gains for other companies also betting on the technology last week, several strong earnings reports from software companies still led to big declines in after-hours trading Wednesday. Hot…

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