AI Market Pullback Could be a Needed Correction -- Market Talk

Dow Jones
Aug 20

0918 GMT - Artificial intelligence-related stocks are experiencing what appears to be a mild and possible necessary correction following a strong rally, AJ Bell analyst Danni Hewson writes in a note. The broader selloff among U.S. tech giants was triggered by a Massachusetts Institute of Technology report suggesting that 95% of companies aren't getting returns on their investments in generative AI, she says. "Investors will be watching closely to see if AI stocks stabilize from here or the selling continues. Nvidia's quarterly earning next week now look even more crucial than they already were," she adds. Infineon technologies and STMicroelectronics shares are down 0.4% and 0.5%, respectively.(najat.kantouar@wsj.com)

 

(END) Dow Jones Newswires

August 20, 2025 05:18 ET (09:18 GMT)

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