A big change is happening in technology markets around the world. Investors are moving their money away from risky bets and toward companies that can show real profits. This shift comes just before an important financial report from Nvidia, a huge chip-making company. For almost two years, excitement about artificial intelligence (AI) has pushed stock markets higher. Now, that excitement is becoming more careful. Recently, Japan’s main stock index fell three percent, and US markets also closed lower.
The reason for this change is simple. Many AI companies have very high values, but people are now asking when they will make good money. Nvidia, whose chips power the AI boom, is worth nearly $5 trillion. It makes over $44 billion every three months, mainly from selling to big cloud and AI companies. However, other tech giants like Google’s parent Alphabet, Amazon, Meta, and Microsoft show different results. Some make money from AI now, but others say it will take longer and cost more.
This situation makes investors ask an important question: when will all the money spent on AI lead to steady growth? An expert, Nigel Green from deVere Group, says, "AI has driven the markets, but now people are looking more carefully at which companies are strong."
Now, everyone is watching Nvidia’s next report. It will not only show past sales but also give clues about the future. This information will tell us if spending on AI technology will slow down. The result will guide investment plans for next year.
In the end, this is a healthy change for the market. Companies must show how their AI spending will create long-term profits. The next few weeks will show which companies are built on real change and which ones only had short-term hype. This will shape the future of AI investing.