In an important week for artificial intelligence, investors are looking toward an earnings report from Nvidia, the world’s most valuable company and a bellwether for the sector.
The recurring question for the U.S. chip maker is whether the AI boom will continue to accelerate as the technology takes over more corners of the broader economy.
“The spending machine is still running, but the bill is getting heavier,” said Stephen Innes of SPI Asset Management.
“Nvidia must now show that the most expensive investment boom in modern market history can still pay its bills.”
Chinese tech giant Alibaba is also keeping focus on the sector this week after announcing on Aug. 23 that it plans to issue $10.2 billion in new shares in Hong Kong to fund its global AI ambitions.
The firm, known for its open-source “Qwen” AI models, has been ploughing tens of billions of dollars into artificial intelligence, with its shareholders eager to see how it will monetise the huge investments.
Meanwhile, South Korea's tech-rich Kospi fell on Aug. 24 after Samsung Electronics said it spent a massive $80 billion to buy back its own shares following weeks of turbulent trading.
The chip giant's shares, along with those of rival SK hynix, peaked in June on optimism for the artificial intelligence boom, but have since fallen amid investor jitters and a broader tech rout.
