Meta Tumbles 6% on AI Spending Fears, 10-Year Yield Falls Below 5%: Stock Market Today
Meta's higher AI spending plan drags tech lower as Treasurys rally and the 10-year yield drops below 5%. Gold, silver and Bitcoin fall; oil climbs.
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AMD stock fell nearly 7% Thursday as semiconductor supply chain concerns and PC market softness overshadowed long-term AI data center demand and price target hikes.
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Meta's higher AI spending plan drags tech lower as Treasurys rally and the 10-year yield drops below 5%. Gold, silver and Bitcoin fall; oil climbs.
As agentic AI demand surges with an expected 40% CAGR through 2033, server CPU demand is accelerating. While Intel and AMD have benefited significantly from this trend, Arm Holdings is positioned to dominate the market long-term due to its superior energy efficiency (30-60% better than x86), growing market share (from 5% in 2020 to 20% currently), and expected 90% dominance in custom server CPUs by 2029. Arm's licensing model and new server CPU business targeting agentic AI workloads present significant growth opportunities.
AI stocks have delivered strong returns but face rising volatility as investors question the sustainability of AI infrastructure spending. The iShares Future AI and Tech ETF (ARTY) offers diversified exposure to 50 leading AI companies across infrastructure, software, and services. While the ETF has surged 130% since its August 2024 restructure, investors should be cautious about concentration risk and its higher 0.47% expense ratio compared to passive index funds.
Lam Research beat Q1 FY27 estimates, but shares fell 11.3% after cautious guidance; analysts cut price targets despite bullish ratings.
Super Micro Computer stock falls over 5% as profit-taking and AI supply chain bottleneck fears outweigh its raised revenue guidance and expanded Nvidia partnership.