Last week's stock market trading was marked by renewed concerns about AI investments, especially in the form of new Chinese competition. This followed the Chinese company Moonshot presenting the AI model Kimi K3, which is said to be able to compete with American counterparts at a lower price.
Has backed down
The market downturn has meant that, for example, the Nasdaq Composite Index, where the largest tech companies are listed, has fallen by around 3 percent in one month and almost 6 percent from its yearly high, recorded at the turn of May and June.
From a longer-term perspective, however, the tech industry has performed extremely strongly, driven by hopes around AI investments.
"As we enter the second half of the year, market expectations are higher than they have been before. There is less room for error in the market at this point. Any kind of news can send the market down," Jack Herr, investment analyst at Guidestone Funds, told Reuters.
Opposite way
This week also sees quarterly reports from two giants: Google's parent company Alphabet and Tesla. The companies have gone in opposite directions on the stock market this year, with a rise of 10 percent and a decline of 13 percent, respectively.
In Alphabet's case, an indication of interest in continued AI investments is expected. The company has plowed billions of dollars into data centres and AI-related infrastructure in recent years. Should the company flag reduced investments, it could trigger strong effects on the market.
