Nasdaq-100 had worst quarter in 3 years due to AI concerns, tech companies declining
From Nasdaq: 2025-04-03 08:00:00
- The Nasdaq 100 experienced its worst quarter in nearly three years, dropping 8.3% due to concerns of an AI bubble. Major tech companies like NVIDIA and Broadcom have seen significant declines. This comes as worries grow over AI investment outpacing demand, with DeepSeek’s cost-efficient AI models causing further unease.
- Investor anxiety rose as Alibaba’s co-founder warned of oversupply in AI infrastructure, echoed by Microsoft’s project cancellations. Despite this, tech giants like Microsoft, Alphabet, Amazon, and Meta continue to invest billions in AI infrastructure. The Nasdaq 100, even after a recent pullback, remains elevated in valuation.
- The Nasdaq 100’s declining P/E ratio and Nvidia’s "defensive" valuation suggest a bearish sentiment in the AI sector. OpenAI’s revenue growth and plans to raise $40 billion show potential, but the industry’s massive investments need time to materialize. Investors may find opportunities in ETFs like the Invesco QQQ Trust.
Read more at Nasdaq: Nasdaq-100 Sees Worst Quarter in 3 Years: What Lies Ahead for ETFs?