AI craze cools down: US tech stocks collectively fall on Tuesday, with NVIDIA's earnings report in focus.

On November 19, U.S. tech stocks faced a sell-off on Tuesday as concerns grew over the high valuations of AI companies, while preparing for Nvidia's earnings report later this week. The tech-heavy Nasdaq fell about 1.8% in early trading, and the S&P 500 index dropped about 1.2%. The core companies of this year's AI boom have become the biggest losers on Wall Street at this stage. Nvidia (NVDA.O) once fell by 3.5%, while Microsoft (MSFT.O), Amazon (AMZN.O), and Meta Platforms (META.O) all dropped about 3%. Joanna Korklen, Chief Investment Officer of Schroders, stated, “There is no doubt that we are entering the late cycle phase of the market's rise,” pointing to “overvaluation” and a “bubble environment.” Korklen noted, “We still hold these stocks,” but added, “At present, I do not recommend passive holding of AI-related zones.” Jonas Goltermann, Deputy Chief Market Economist at Capital Economics, said, “The sell-off of U.S. tech stocks has once again drawn attention to Nvidia's earnings report, which will determine the trend of the entire tech sector in the coming weeks and even by the end of the year.” (Jin10)