AI మీద IT Companies Speed , Josh , Expectations తగ్గుతున్నాయి అంటున్న WSJ

[andhra_jp]

Tech Rally Shows Signs of Losing Steam

Doubts about artificial intelligence and a rotation into previously unloved sectors slow tech gains

The outlook for Wall Street’s most popular stocks—the Magnificent Seven tech giants that have led major indexes to records—is much less clear.

Those market leaders—Amazon.com, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia and Tesla—have been buffeted recently by questions about the potential for artificial intelligence, concerns about their increasingly stretched valuations and competition from hitherto unloved parts of the market. 

The Nasdaq has climbed some 41% from its April 8 low, lifting valuations for some of the biggest tech firms to sky-high levels. 

At the same time, stubbornly high inflation readings and deepening cracks in the labor market left some investors jittery, and many expected Powell to sound cautious about cutting rates in his Friday speech.

Those nerves were compounded by the lackluster launch for OpenAI’s GPT-5, which the company had marketed as “a PhD-level expert.” OpenAI faced an intense backlash when the product failed to answer basic math questions or carry out other simple tasks. Some were put off by its colder tone and how it routed user queries to its different AI models.

OpenAI Chief Executive Sam Altman compared current market enthusiasm for AI investments to the conditions during the dot-com boom and bust more than two decades ago. Meta froze its AI hiring spree. And a report from one MIT initiative said that AI use at hundreds of companies hasn’t produced significant revenue growth or profits. 

“There’s been a vibe shift,” said Jéssica Leão, a partner at venture-capital firm Decibel, who pointed out in a recent blog post that OpenAI had promised a superintelligent GPT-5, which Altman marketed with a Death Star teaser. Instead, “we got a model router.”

“That’s the AI trend in a nutshell: We have these big, long rallies and then cold water gets thrown on it,” said Bret Kenwell, U.S. investment analyst at eToro. “It’s two or three steps forward and one step back.”