AI BUBBLE
Elon Musk loses nearly half of his wealth as SpaceX shares crash 46%. More downside ahead?
Musk’s wealth peaked at around $1.33 trillion on June 16, when SpaceX shares soared to a lifetime closing high of nearly $202 apiece. However, as the shares crashed, Musk’s net wealth dropped to $684 billion, Bloomberg reported. Notably, the over $600 billion wealth erosion is higher than any other billionaire's total wealth, except Musk himself.
AI bubble gone bust? Once a billionaire, how AI investor Leopold Aschenbrenner lost most of his hedge fund’s fortune in days
Aschenbrenner's fund, Situational Awareness, massively grew to as big as $45 billion at the beginning of July before big losses took hold, CNBC reported citing sources. The fund began to see massive losses in recent weeks as its heavyweight AI holdings like SK Hynix sharply crashed, while its short positions in software companies such as Adobe moved sharply against it, the report added.
How the quick fall from grace of a fund run by 'Nostradamus of AI' triggered a 24-hour race to salvage it
Leopold Aschenbrenner's hedge fund incurred significant losses and a forced sale of investments. Billionaire Ken Griffin's Citadel acquired these discounted technology holdings. The fund's assets plunged from forty-five billion to ten billion dollars. Aschenbrenner took responsibility for the month's performance and vowed changes. He continues to manage a large equity hedge fund and is set to marry soon.
Korea’s leverage trap has an echo in India
Indian brokers are lending large sums to retail investors, creating systemic risk. Retail investors are borrowing heavily to buy stocks at stretched valuations. This margin debt has ballooned significantly, with new-age brokers aggressively competing. Unlike Korea's AI focus, India's debt supports stocks global investors are avoiding. Policymakers face challenges as inflation and a weakening rupee test their resolve.
South Korea’s Kospi index jumps more than 16% on a surge of chipmaking stocks
South Korea's Kospi index saw a significant jump, mirroring Wall Street's positive performance. AI-related stocks experienced a strong rebound after recent declines earlier in the week. Japanese markets also climbed, with technology and investment firms showing gains. Oil prices increased due to ongoing tensions and a closed key shipping route. Major US indices closed higher on Thursday, indicating a positive market sentiment.
'Corporate majdoor celebrating Guru Purnima': Viral Instagram video shows employees 'worshipping' ChatGPT, Claude and Gemini
Instagram Viral Video: Social media shows professionals treating AI tools as modern gurus this year. Employees are humorously offering digital tributes to platforms like ChatGPT and Gemini. This trend reflects AI's growing role in daily work tasks and problem-solving. The concept of Guru Dakshina has humorously evolved into subscription payments for these services.
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Global chip rout: How should investors play India's AI trade that gave up to 400% returns this year?
Global AI stocks face a sharp selloff, impacting Indian investor strategies. Indian markets focus on infrastructure like data centers and power equipment. Analysts suggest a balanced approach, avoiding panic exits from AI-linked trades. Investors should prioritize quality companies with strong fundamentals and clear execution. Valuation resets offer opportunities for disciplined, long-term investment in the AI theme.
Why did market rise today? Sensex soars 890 pts, Nifty closes above 24,250; 4 factors behind Rs 4 lakh crore gains on D-Street
Indian stock markets experienced a significant surge on Wednesday. Benchmark indices Sensex and Nifty both rose over one percent. This occurred despite a sharp increase in oil prices due to US-Iran tensions. Broader markets also traded positively, with IT and Metal sectors leading gains. Market volatility remained subdued as broader markets showed strength.
Why did market rise today? Sensex soars 890 pts, Nifty closes above 24,250; 4 factors behind Rs 4 lakh cr gains on D-Street
Indian stock markets experienced a significant surge on Wednesday, with Sensex and Nifty rising over one percent. This rise occurred despite escalating US-Iran tensions and a sharp increase in global oil prices. Key factors contributing to the market's upward movement included a global AI selloff and a strengthening rupee. Foreign institutional investors also showed renewed buying interest in Indian equities.
Kospi crashes 12% after SK Hynix earnings; best performing Asian market of 2026 plunges 43% in a month. What’s ahead?
South Korea's Kospi index crashed over 11% on Wednesday, extending its drop to 43% from its June peak into technical bear market territory. The sharp plunge, triggered by earnings from chipmaker SK Hynix that missed lofty AI-fueled market estimates, prompted government reviews into market stabilisation measures.
Kospi crashes 44% in a month but Nomura sees 109% upside in South Korea's stock market. Here's why
South Korea's Kospi index dropped 44% from its June peak amid global AI growth worries and foreign fund outflows. Despite the sharp pullback into bear market territory, Nomura projects up to 109% upside, setting a 10,000-11,000 target driven by corporate share buybacks, strong AI earnings, and governance reforms.
Global Market | AI boom could complicate central banks’ inflation assessment, monetary policy decisions: BIS
Artificial intelligence complicates economic assessments for central banks globally. The technology simultaneously boosts demand and expands future supply potential. Policymakers face an unusually complex environment as AI impacts investment and trade. Distinguishing AI-driven growth from overheating economies presents a key challenge. Monetary policy misjudgements risk increasing as economies adjust to AI expansion.
Chipmaker CXMT vaults to top of China's valuation with 466% surge in Shanghai debut
China's leading memory chipmaker CXMT became the most valuable company in the mainland after soaring 500 percent on its market debut Monday, underscoring the impact of AI-driven demand on the semiconductor sector. The firm's shares rocketed more than 500 percent by mid-morning, taking its market capitalisation to 3.5 trillion yuan ($520 billion) -- surpassing megabank ICBC as the mainland's most valuable company.
AI-led boom in IPOs raises concerns about a bust
This has been a banner year for stock listings, thanks largely to AI firms, but the massive size of the operations raises questions about whether the markets can continue to absorb them. AI is also driving the growth in listings by Chinese firms, as well as the tighter restrictions on capital movements amid continued tensions between Beijing and Washington.
Alphabet's quarterly earnings beat Wall Street estimates, but here's what is spooking investors
Alphabet announced strong second-quarter earnings, but its shares declined significantly. The company plans to substantially increase its capital expenditures for artificial intelligence. This massive spending hike comes as Google Cloud revenue saw substantial growth. CEO Sundar Pichai addressed concerns about Google's competitive position in the AI race. Investors and analysts are weighing the potential returns of this significant AI investment.
Gen Z marks the rot: NEET protests mark a deep socioeconomic grievance, and fractured employment system
Gen Z faces a prosperity collapse, unlike previous generations in India. This shared economic grievance fosters solidarity among young people across the nation. Current protests reflect this discontent, focusing on jobs and opportunities. The dynastic elite ignores these profound socioeconomic issues and their consequences. This generational dissent will persist until a political promise of prosperity is addressed.
Quote of the day by John Maynard Keynes: "Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation"
John Maynard Keynes' quote highlights speculation's dual nature in markets. Healthy speculation supports enterprise, while excessive speculation can destabilize economies. Modern markets face risks as AI and cryptocurrencies can overshadow fundamentals.
AI-focused E2E Networks shares hit 5% upper circuit as firm swings to black in Q1, revenue soars 334%
AI-focused cloud provider E2E Networks hit the upper circuit after reporting a sharp turnaround in Q1FY27, posting a net profit of Rs 44 crore against a year-ago loss. Revenue more than quadrupled, while EBITDA and margins surged, driven by strong demand for AI infrastructure and expanded GPU deployment.
Why upgrading to a Samsung Bespoke AI washer dryer is a smart choice for your home
Samsung's Bespoke AI washing machine range, spanning front load and washer dryer combo segments, redefines home laundry through graduated AI-led intelligence. From energy optimisation to fabric-sensitive drying, each model builds a compelling case for smarter, effortless modern living.
How Korean stocks turned from trusty bellwether to AI frenzy
That volatility, felt on dealing desks from Tokyo to New York, has not only wreaked havoc with portfolios - it has also dramatically distorted investors' views on fundamentals in South Korea, a market at the heart of the global AI boom. More than half of all stock market circuit breakers on the benchmark KOSPI - trading curbs activated when the index loses more than 8% for at least a minute - in South Korean history have occurred in the past six months alone.
Wall Street's chip index enters bear market! Is the AI bubble finally going bust?
Wall Street's semiconductor index slipped into bear market territory after tumbling more than 20% from its June peak, raising fresh questions over the sustainability of the AI-driven rally. A new AI model from China's Moonshot and concerns over heavy AI spending triggered a broad selloff across global technology stocks.
Global Market: South Korea's AI-driven stock frenzy fuels volatility, challenges market fundamentals
The sharp swings have unsettled investors and regulators alike, with market movements increasingly driven by leveraged investment products rather than corporate fundamentals. The volatility has also complicated the assessment of South Korean equities, particularly as the country remains a critical supplier of AI-related semiconductor technology.
TSMC pledges another $100 billion for US chip expansion
Taiwan Semiconductor Manufacturing Company announced a significant new investment. The company plans to spend an additional one hundred billion dollars in the United States. This latest commitment brings their total US chipmaking investment to two hundred sixty-five billion dollars. TSMC also raised its annual revenue forecast after booking record profits. Runaway demand from the artificial intelligence boom fueled these strong financial results.
Zoho's Sridhar Vembu asks if AI can solve cancer, climate change and war. Is it the only technology that matters? Internet left divided
Zoho founder Sridhar Vembu has sparked a debate on X after questioning whether AI could become the only technology that truly matters if it can solve major global challenges such as cancer, climate change, housing affordability and even war. His post drew mixed reactions, with some users calling AI a powerful enabler that will reshape every industry, while others argued it should complement—not replace—other technologies and warned against treating the current AI boom as the answer to every problem.
Dutch tech giant ASML posts gain in second-quarter profits
Dutch tech giant ASML, which makes cutting-edge machines to manufacture semiconductor chips, Wednesday posted a gain in second-quarter net profits compared with the same period in 2025. Europe's biggest tech firm by market value said net profits came in at 2.9 billion euros, compared with 2.3 billion in the second quarter of last year.
Explained: Why SK Hynix ADR premiums soared 50% over South Korean shares and how this reminds market of dotcom bubble
SK Hynix’s ADRs are trading at a more than 50% premium to their South Korea-listed shares just days after their Nasdaq debut, raising comparisons with TSMC’s dot-com-era valuation gap. Analysts attribute the divergence to restricted arbitrage, strong AI-driven demand, and easier access for global investors through US markets.
Is Wall Street heading towards a massive crash by 2026-end? Here's what history may be hinting at
Strong US stock gains in '26 are being overshadowed by historical midterm election volatility, AI valuation concerns and bearish warnings. While corrections are common in midterm years, analysts expect markets to recover strongly after elections, supported by favourable historical trends.
SoftBank's Masayoshi Son says AI will need $5 trillion per year by 2040, dismisses bubble talk
"The business model will be viable because by 2040, if AI revenue makes up 20% of global GDP, spending 800 trillion yen a year is a rounding error," Son said.
ET Graphics: Wall Street cuts AI giants’ paper valuation loop
Last week, AI bellwethers including Nvidia, AMD and Intel came under renewed selling pressure, while semiconductor stocks such as Micron, Broadcom and Marvell remained well below their recent highs, as investors questioned whether the industry’s trillion-dollar infrastructure buildout could generate sustainable returns.
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