By Callum Jones
Publication Date: 2025-11-20 21:04:00
Fears of a growing bubble surrounding artificial intelligence hype resurfaced on Thursday as leading U.S. stock markets fell, less than 24 hours after strong results from chipmaker Nvidia sparked a rally.
Wall Street initially rose after Nvidia, the world’s largest publicly traded company, reassured investors of strong demand for its advanced data center chips. But the relief wore off and the technology stocks at the center of the AI boom came under pressure.
The benchmark S&P 500 closed down 1.6% in New York and the Dow Jones Industrial Average closed down 0.8%. The technology-focused Nasdaq Composite closed down 2.2%.
Previously, the FTSE 100 in London closed with a gain of 0.2%, while the Dax in Frankfurt rose by 0.5%. The Nikkei 225 was up 2.65% in Tokyo.
Nvidia, currently valued at around $4.4 trillion, has led to an extraordinary surge in valuations of AI-related companies in recent months. As companies invest in chips and data centers to gain a foothold in AI, fears of a bubble are growing.
While…
