Good morning, everyone.
Yesterday, US tech stocks closed higher for the first time after several consecutive days of losses, with chipmakers like AMD and AVGO staging a strong rebound.
Capital flowed back into AI-related companies, and the market has started expecting these firms to deliver strong second-quarter earnings.
S&P 500 Information Technology Index gained 1.3%, while the SOX Index rebounded 2.2%.
On the other hand, SpaceX shares fell 1%, with trading volume exceeding 2.6 billion USD.
Most of that trading activity was concentrated in the final few seconds before the market closed.
Looking at current situation in US tech sector, many people may wonder
If these companies are still growing, why are their stock prices experiencing such significant volatility?
The key reason is not that AI companies are generating weak revenue, but that their growth is coming in below the market’s expectations.
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