According to the financial news app Zhitong Finance, due to concerns about the rising cost of artificial intelligence infrastructure and the increasing risk of economic recession, major tech stocks were particularly vulnerable during the market pullback in August, leading to a decline in their market capitalization.
Last month, worries about Alphabet (GOOGL.US) earnings arose as YouTube ad sales slowed down, causing a 4.7% decrease in Alphabet's market value. The U.S. judge's ruling against Google for violating antitrust laws, as well as the emergence of new competitors like OpenAI developing AI-based search engine prototypes, also contributed to the decline in Google's stock price.
Affected by a slowdown in online sales, Amazon (AMZN.US) saw a 4.5% decrease in market value.
Tesla (TSLA.US) experienced a 7.7% drop in market value last month after struggling with weak earnings in the second quarter and Canada's plan to impose a 100% new tariff on electric cars manufactured in China. As the world's highest-valued car manufacturer, Tesla started exporting electric cars made in Shanghai to Canada last year, and the Canadian government's plan raised concerns about exporting from the higher-cost U.S. production base or affecting profits.
NVIDIA (NVDA.US), which holds over 80% of the AI chip market share, as a major driver and beneficiary of AI development, saw a unique position. Its market value fell by 7.7% to $2.92 trillion in the last week of August. The company had previously expected lower-than-expected gross margins in the third quarter and revenue only meeting expectations, disappointing investors who were anticipating stronger performance.
On the positive side, U.S. pharmaceutical company Eli Lilly (LLY.US) saw a nearly 20% surge in market value, becoming the company with the largest market gain, mainly due to strong sales and the launch of a weight-loss drug that significantly reduces the risk of type 2 diabetes in overweight adults.
In the eyes of many, Berkshire Hathaway (BRK.A.US) represents the U.S. economy. At the end of August, Berkshire Hathaway's market value surpassed $1 trillion for the first time, reflecting investors' confidence in this conglomerate built by Warren Buffett over nearly 60 years.
Meta (META.US) also saw a nearly 10% increase in market value, as its second-quarter revenue exceeded market expectations and third-quarter revenue is expected to experience strong growth, indicating that strong digital ad spending on its platform may offset the costs of its AI investments

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In August, US technology stocks faced a market correction, with market capitalization generally shrinking. Alphabet, Amazon, and Tesla saw their market capitalization drop by 4.7%, 4.5%, and 7.7% respectively. Due to lower-than-expected gross margin forecasts, NVIDIA's market capitalization fell to $2.92 trillion at the end of August. Meanwhile, pharmaceutical company Eli Lilly saw its market capitalization rise by nearly 20%, becoming the company with the largest market increase, while Berkshire Hathaway's market capitalization surpassed $1 trillion for the first time

- Concerns over rising costs of artificial intelligence infrastructure and increasing economic recession risks made major tech stocks vulnerable during the market pullback in August. Alphabet(GOOGL.US) saw a 4.7% decrease in market value due to slowing YouTube ad sales, antitrust rulings against Google, and emerging competitors like OpenAI developing AI-based search engine prototypes. Amazon (AMZN.US) lost 4.5% in market value due to slowed online sales, while Tesla (TSLA.US) dropped 7.7% following weak Q2 earnings and potential 100% tariffs on Chinese-made cars in Canada. Nvidia (NVDA.US), dominating over 80% of the AI chip market, faced a 7.7% decline in market value, disappointing investors with lower Q3 profit margins. On a positive note, pharmaceutical company Eli Lilly (LLY.US) surged nearly 20% on strong sales and a new weight-loss drug reducing type 2 diabetes risks. Berkshire Hathaway (BRK.A.US) surpassed $1 trillion in market value, reflecting investor confidence in Warren Buffett's conglomerate. Meta (META.US) also rose by nearly 10% on strong Q2 revenue exceeding expectations, hinting at potential offsetting of AI investment costs with robust digital ad spending on its platform.

Tech stocks in the US stock market shrank in August, with Eli Lilly and Berkshire Hathaway standing out