AMD Loses $20 Billion in Market Value Amid AI Stock Volatility, Tech Giants Ramp Up Investments

The AI sector has been going through big changes, with stock prices and how people feel about the market changing a lot. Advanced Micro Devices (AMD) lost more than $20 billion in value.

Super Micro also saw its stock prices drop by 25% in the last month, even though it did better than expected in its quarterly results. This shows how quickly the market reacts to what’s happening in the AI industry. Experts think the market was too hopeful about how many computer chips would be sold.

AMD predicted it would sell $4 billion worth of AI chips by 2024, but this was less than what investors were expecting.

AMD Loses $20 Billion in Market Value Amid AI Stock Volatility, Tech Giants Ramp Up Investments
Meta Platforms Inc. to invest $35-40 billion, emphasizing significant AI capabilities expansion.

Even though the market has been up and down lately, big tech companies are still investing heavily in AI.

Meta Platforms Inc. plans to spend between $35 billion and $40 billion in 2024, focusing a lot on AI. Amazon is also increasing its data centers to support more AI services, and Apple is looking into new AI features for its iPhones.

All these big tech companies investing in AI shows how important they think it is for their future products and services.

It’s becoming clear that making money from selling the technology behind AI (like servers and chips) is more profitable than offering AI services. Companies like Alphabet and Microsoft say their cloud computing divisions are doing better than other parts of their businesses.

Alphabet and Microsoft report cloud computing outperforms; Amazon leads in AI platform and services provision.

Amazon is not only providing a platform for AI models but also offering AI services. This means the technology behind AI is more profitable right now than the AI services. However, this could lead to more electricity being used by data centers, which might not be good for the environment.

But there are challenges for the AI sector. There are rules and regulations to follow, and the recent U.S. law saying ByteDance has to sell TikTok by 2025 shows how politics can affect the tech industry.

Also, people are cautious about investing in tech companies, and there’s talk about interest rates going up, which could affect companies like Palantir.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x