Khaberni - Global stock markets are witnessing sharp fluctuations due to growing concerns about the impact of artificial intelligence on the economy and investments.
According to a Bloomberg report, there is increasing concern that artificial intelligence technologies might reshape entire sectors, prompting investors to sell shares of companies perceived to be at risk.
Many doubt that the hundreds of billions of dollars invested annually by major tech companies like Amazon, Microsoft, Meta, and Alphabet will bear significant fruit in the near future.
Concerns have escalated over the past two weeks with a broad sell-off affecting various companies in sectors like real estate services, financial brokerage, insurance, and logistics, leading to a decline in the stock values of major artificial intelligence investors by more than one trillion dollars.
The shift in investment sentiment marks a clear break from previous years, when optimism about an AI-driven productivity boom drove stock prices to record levels. During that period, major tech companies made huge gains, with firms like Meta Platforms and Alphabet increasing in value by hundreds of percentage points since the end of 2022.
But with the start of the latest earnings season, the picture has started to change. Financial data showed that massive spending on artificial intelligence development has not yet translated into comparable revenue growth, raising concerns among investors who have become more sensitive to the actual return on these investments.
Estimates indicate that major tech companies like Microsoft, Amazon, Meta Platforms, and Alphabet will collectively spend more than 600 billion dollars on capital expenses related to artificial intelligence in just one year.
This massive level of spending is starting to pressure cash flows and increase companies' reliance on external financing, changing the financial model that has helped these companies ascend over the past decade.
Companies that may be directly affected by artificial intelligence impacts have also been influenced, as some new products have led to lower stocks in professional services firms, insurance agents, wealth managers, and logistics companies.
Nevertheless, some analysts believe the reaction may be exaggerated, as artificial intelligence could increase company profits instead of reducing them, and that the current investment represents a long-term race to position in the market more than the search for immediate profits.
Experts expect market volatility to continue in the upcoming period, as investors monitor the impact of artificial intelligence on company profits and financial stability, to later determine whether investing in this technology will transform it into a tool for enhancing profitability in the long term.
