🚨 WHAT HAPPENED WITH AI SECTOR? 🚨
Three main reasons behind the sell-off:
1. New AI regulations. Democrats want to pause new data center projects, remove tax breaks, and introduce stricter rules on energy and water use.
2. More control over AI. A proposed bill would create a new Department of AI to oversee powerful AI models and limit dangerous features. Breaking the rules could lead to huge penalties, including up to 20 years in prison.
3. Lower AI spending expectations. The market now expects AI companies’ spending growth to peak as early as 2027. This could slow demand for chips and earnings growth at NVIDIA, AMD, Micron, and other major players.
Conclusion:
With AI stocks already expensive, these new risks triggered a wave of selling and profit-taking.
The market will likely need some time to adjust to the new situation and find a new price level🥲
Cryptomarket hugely depends on AI market, so that it’s worth waiting for deep confirmation before re-entering the market😎
#AI #CanUSStocksReboundAfterNonfarmPayrolls? #TRUMP
Three main reasons behind the sell-off:
1. New AI regulations. Democrats want to pause new data center projects, remove tax breaks, and introduce stricter rules on energy and water use.
2. More control over AI. A proposed bill would create a new Department of AI to oversee powerful AI models and limit dangerous features. Breaking the rules could lead to huge penalties, including up to 20 years in prison.
3. Lower AI spending expectations. The market now expects AI companies’ spending growth to peak as early as 2027. This could slow demand for chips and earnings growth at NVIDIA, AMD, Micron, and other major players.
Conclusion:
With AI stocks already expensive, these new risks triggered a wave of selling and profit-taking.
The market will likely need some time to adjust to the new situation and find a new price level🥲
Cryptomarket hugely depends on AI market, so that it’s worth waiting for deep confirmation before re-entering the market😎
#AI #CanUSStocksReboundAfterNonfarmPayrolls? #TRUMP
