AI Hype Fades as Investors Demand Results From Tech Giants

Big Tech companies are facing investor skepticism despite heavy investments in artificial intelligence. Second-quarter earnings growth has slowed, and investors are demanding proof that AI is translating into profits. Disappointing results from companies like Microsoft, Amazon, and Tesla, coupled with concerns about a potential economic slowdown, have fueled market volatility. The Nasdaq 100 Index has entered a correction, with investors shifting away from tech stocks and towards safer assets like bonds. This shift indicates growing concern about the economic outlook and the effectiveness of AI investments in the short term.