NVIDIA, the technology stock leading the AI revolution is down 15.7 % in the same period.
The draw down in AI technology stocks is driven by the current huge spending on AI data centers build out, the probable future profitability of the largest technology companies, the expected policy of the Federal Reserve, the current valuations of the leading technology companies, namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla.
The Nasdaq Composite fell circa 35 % and NVIDIA fell circa 65 % in the 2021-2022 market rout which again focused on technology.
This time around the Nasdaq Composite could fall around 21 % from its 29 th October peak and NVIDIA's stock price could fall 40 % from its recent peak dragging along Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla, according to Wolfteam Ltd.'s projections and estimates.
The Nasdaq Composite will swiftly recover along with the rest of the market, though, in Wolfteam Ltd.'s view.
The current promise of AI driven to a large extent by the overly optimistic forecasts of Wall Street research analysts investors and Silicon Valley's technologists and investors is simply too great and will drive the stock market for years. AI could turn out to be a bubble, but the subsequent bust could create new world improving companies akin to Amazon, Alphabet, Google's owner and Meta, Facebook's owner which were created in the aftermath of the internet Dot Com boom and 77 % fall of the Nasdaq Composite bust.
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