The past Monday brought turmoil to the financial world. It all started with the fall of the Japanese stock market, the Nikkei 225 index fell by 13.5%, which exceeded the collapse of 1987, which led to a long economic stagnation in Japan. The Japanese market was followed by the stock markets of South Korea, Taiwan and other countries. And all this seriously affected the technology industry, including Taiwanese manufacturers and American big tech. The shares of many corporations fell to a record low. Nvidia lost more than $ 300 billion in market capitalization, but partially recovered its losses. Now the capitalization of the green giant is estimated at $ 2.52 trillion, and the maximum this year reached 3.34 trillion. Microsoft, Alphabet (Google), Amazon, Tesla, Meta and other major players also lost heavily. As writes CNBCthe total losses of leading IT companies in one day of trading are estimated at a trillion dollars.
Image: CNBC, Michael M. Santiago
Tech investors have been worried for some time. The Nasdaq fell 3.4% last week and lost another 3.4% on Monday. That’s a pretty steep decline after the market and tech giants were on the rise a few months ago. However, experts have long said the market is overheated due to inflated expectations for artificial intelligence, so many were expecting a correction in the stock prices of big companies. In particular, Elliott Management, one of the world’s largest hedge funds, told clients that Nvidia was turning into a “bubble” and the AI craze was greatly overpriced. Now that has coincided with other global factors, leading to a major collapse.
Separately, it is worth mentioning the Intel company, which faced a crisis against the backdrop of a scandal with unstable operation of Core 13/14 series processors and the decision to lay off employees en masse. After Monday, the company’s shares lost a record 30%. It is interesting that the day before, the head of the company Pat Gelsinger in the social network X (Twitter) even noted a phrase from the Holy Scripture, probably in anticipation of very big problems: “Let your eyes look straight ahead; fix your gaze directly before you. Give careful thought to the paths for your feet and be steadfast in all your ways.”
“Let your eyes look straight ahead; fix your gaze straight before you. Ponder the path of your feet, and let all your ways be established.” (Proverbs 4:25-26)
