Overview
- High-flying tech and AI shares slumped this week in what several strategists called a short-lived “mini panic,” denting a rally that had powered markets to records.
- DWS chief Stefan Hoops warned there is “no playbook” for an AI boom led by retail investors, noting concentrated gains in the Magnificent Seven and the potential for a rapid unwind.
- Nvidia reports on Wednesday in what traders describe as a pivotal test for the AI trade, with FactSet estimates calling for adjusted earnings of $1.25 per share on $54.8 billion in sales and focus on chip supply and looming power constraints.
- A new Accel report projects about 117 gigawatts of additional AI data-center capacity by 2030, translating to roughly $4 trillion in capex over five years and about $3.1 trillion in revenue needed to recoup it.
- Tech leaders offered mixed signals: DeepL and Picsart executives flagged stretched valuations and “vibe revenue,” while Groq’s CEO argued that heavy funding of real AI breakthroughs will be returned with interest.