AI Stocks Tumble as Investors Seek Proven Returns

Stock Market Shifts: AI Sector Faces Downturn as Investors Demand Proven ReturnsThe stock market witnessed a significant shift this week, with AI-linked companies experiencing a downturn due to investors growing skepticism towards the sectors rapid growth. Oracle and Broadcom played crucial roles in this change, with Oracles underperforming revenue and Broadcoms warning of potential profit margin shrinkage. This led to a broader rotation out of AI infrastructure and power-related stocks, affecting companies like Coherent, Plexus, and TTM Technologies. Goldman Sachs sale of Coherent shares also contributed to the markets bearish sentiment. Despite the recent dip, Coherents shares have still seen a significant increase this year, but the markets reaction suggests that the long-term perception of the business may not be fundamentally altered.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.