AI Boom Cools Down: US Tech Stocks Fall on Tuesday, Nvidia Earnings in Focus

Jinse Finance reported that U.S. tech stocks were sold off on Tuesday as investors' concerns about the high valuations of artificial intelligence companies intensified, while also preparing for Nvidia's earnings report this week. The tech-heavy Nasdaq fell about 1.8% at the open, and the S&P 500 index dropped about 1.2%. The core companies of this year's AI boom have become the biggest decliners on Wall Street at this stage. Nvidia (NVDA.O) once fell 3.5%, while Microsoft (MSFT.O), Amazon (AMZN.O), and Meta Platforms (META.O) all dropped about 3%. Joanna Cokelun, Chief Investment Officer at Schroders, said: "There is no doubt that we are entering the late-cycle stage of the market rally," pointing out "overvaluation" and a "bubble environment." Cokelun stated: "We still hold these stocks," but added, "At present, I do not recommend passively holding the AI-related sector." Jonas Goltermann, Deputy Chief Market Economist at Capital Economics, said: "The renewed sell-off in U.S. tech stocks makes Nvidia's earnings report even more closely watched, as it will determine the trajectory of the entire tech sector for the coming weeks and even the rest of the year."