Possibility of AI Bubble Burst Exceeds 18%, IBM Stock Plummets
Concerns are growing over whether the massive capital investment in the AI industry will translate into performance and profitability. IBM and Asian semiconductor stocks have sharply declined, leading to weakness in U.S. stock index futures and Bitcoin. According to CoinGecko, the possibility of an AI bubble burst has surpassed 18% this year. The decline in stock prices of major AI-related companies and poor revenue performance are cited as the backdrop for this rising probability. The Wall Street Journal reports that U.S. stock index futures fell due to spreading anxiety related to AI, with SK Hynix and Samsung Electronics' stock prices dropping by about 9%. IBM's stock price fell by as much as 25% this week, marking the largest single-day drop since 1968. George Noble, a former Fidelity fund manager, warned that the impact of an AI bubble burst could be 17 times greater than that of the dot-com bubble burst. Andrew Bailey, the Governor of the Bank of England, also mentioned that the AI bubble burst could affect the UK economy. The performance and capital expenditure plans of AI-related companies are expected to be key variables influencing risk appetite in the stock market and digital asset market in the future.
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