---
title: "US Stock Market News | Goldman Sachs Concerned about AI Industry Valuation, Nvidia Drops 3% Temporarily"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/208608745.md"
description: "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"
datetime: "2024-07-11T14:47:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/208608745.md)
  - [en](https://longbridge.com/en/news/208608745.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/208608745.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/208608745.md) | [繁體中文](https://longbridge.com/zh-HK/news/208608745.md)


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

According to the financial news app Zhitong Finance, on Wednesday, the stock price of NVIDIA (NVDA.US) fell by 3% at one point. As of the time of writing, the stock has narrowed its decline to less than 2%, trading at $132.22. Other chip stocks also followed suit with declines, such as TSMC (TSM.US) dropping over 1.3%, Qualcomm (QCOM.US) falling over 1.7%, and Broadcom (AVGO.US) declining by nearly 2%.

Goldman Sachs strategist Ryan Hammond's team stated in a recent report that tech giants including Amazon (AMZN.US), Meta Platforms (META.US), Microsoft (MSFT.US), and Google parent company Alphabet (GOOG.US) have spent approximately $357 billion on capital expenditures and research and development in the past year. A "significant portion" of these expenditures were allocated to artificial intelligence, accounting for nearly a quarter of the total capital expenditures and R&D spending of the S&P 500 index (.SPX.US).

Goldman Sachs warned that today's mega-cap companies will ultimately be required to prove that their investments can generate revenue and profits. Failure to demonstrate signs of profitability could lead to a devaluation of their valuations

### Related Stocks

- [The Goldman Sachs Group, Inc. (GS.US)](https://longbridge.com/en/quote/GS.US.md)

## Related News & Research

- [Anthropic in Talks for October IPO to Raise Over $60 Billion, Sources Say](https://longbridge.com/en/news/280716276.md)
- [SpaceX Has Filed Confidentially For Its IPO: Report](https://longbridge.com/en/news/281408917.md)
- [Keurig Dr Pepper Completes Landmark JDE Peet’s Acquisition](https://longbridge.com/en/news/281370648.md)
- [The Goldman Sachs Group (NYSE:GS) Given New $1,021.00 Price Target at Morgan Stanley](https://longbridge.com/en/news/281412346.md)
- [Here's How Much $100 Invested In abrdn Physical Silver Shares ETF 10 Years Ago Would Be Worth Today](https://longbridge.com/en/news/281394387.md)