Analysts: The US stock AI sector has seen a mild and necessary correction, focusing on whether Nvidia's earnings report can stabilize the market
2025-08-20 09:23:23
In a note, Danni Hewson, analyst at AJ Bell, said artificial intelligence-related stocks were making what appeared to be a modest and perhaps necessary correction after a strong rally. She pointed to a broader sell-off by US tech giants stemming from a report by the Massachusetts Institute of Technology showing that 95 per cent of companies have yet to reap returns from their generative AI investments. "Investors will be watching closely to see if AI stocks stabilize here or if the sell-off continues," she added. "NVIDIA's quarterly earnings next week now look even more critical than before."
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