US Stock Market News | Goldman Sachs Concerned about AI Industry Valuation, Nvidia Drops 3% Temporarily

On Wednesday, NVIDIA's stock price fell by 3% at one point, but as of the time of publication, the stock's decline has narrowed to less than 2%, trading at $132.22. Other chip stocks followed suit, with TSMC falling by over 1.3%, Qualcomm by over 1.7%, and Broadcom by nearly 2%. Goldman Sachs strategist Ryan Hammond's team stated in a recent report that internet giants such as Amazon, Meta Platforms, Microsoft, and Google-C have spent approximately $357 billion on capital expenditures and research and development in the past year, with a "significant portion" of these expenditures allocated to artificial intelligence, accounting for nearly a quarter of the S&P 500's total capital and R&D expenditures. Goldman Sachs warned that today's mega-cap companies will ultimately be required to prove that their investments can generate revenue and profit. A lack of profitability could lead to a devaluation of their valuations