Tech stocks under pressure as CoreWeave, TSMC and Anthropic take center stage

what happened

Technology stocks had a weak week, with chipmakers and AI infrastructure providers leading the losses while the Nasdaq Composite fell more than 4%. Seeking Alpha reports that investors have grown doubtful about the payoff from large AI investments. CoreWeave shares dropped 12.80% on Friday, and its debt and lease obligations stood at about $52 billion at the end of June.

TSMC forecast fourth-quarter revenue of $52.3 billion to $54.3 billion, above the analyst consensus of $50.48 billion. Revenue from high-performance computing rose 22% quarter over quarter. Bank of America believes the slump in SK Hynix and Samsung Electronics may reflect fears of slower AI spending rather than weaker memory fundamentals.

Reuters reported that some investors discussed a valuation of about $1.5 trillion for Anthropic, below earlier expectations of roughly $2 trillion. Meta, meanwhile, released Muse Spark Open, an open AI model with 816 billion parameters.

why it matters

The story matters for the AI infrastructure trade: rising debt at cloud providers and doubts about the return on capital spending weigh on data center operators and the semiconductor sector. The key question for investors is whether AI revenue can catch up with rising costs.

market impact

Chipmakers and AI infrastructure: pressure from doubts about returns on AI spending

tags

instruments