BUZZ-AI-related stocks under pressure as rally takes a pause

Reuters
Aug 30
BUZZ-AI-related stocks under pressure as rally takes a pause

** Shares of marquee AI names fell in early afternoon trading in broader tech sell-off

** AI bellwether Nvidia NVDA.O falls 3.3%, influencing declines in other chipmaking stocks

** NVDA set for third straight session of losses, as its quarterly earnings this week failed to impress investors

** Its earnings raised doubts over China business amid export restrictions due to U.S.-China trade tensions

** Also faces competition from Chinese rivals; Alibaba develops new AI chip to help fill Nvidia void, as per Wall Street Journal

** NVDA down 2.1% for the week so far

** Peer Broadcom AVGO.O falls 4.4% on Friday, while Oracle ORCL.N drops 6.4%

** Dell Technologies DELL.N also slides 8.3%; Intel down 1.5%

** Other firms that have benefited from AI such as GE Vernova GEV.N, Constellation Energy CEG.O and Vistra Corp VST.N all trading lower on the session

** AI stocks under pressure this month as investors see buying opportunity from the high-flying sector after robust gains since April lows

** "They've had a massive run post the lows in April. So you it doesn't take much of an excuse or catalyst for some profit-taking," said Art Hogan, chief market strategist at B Riley Wealth

** Philadelphia Semiconductor index .SOX down 2.7%, set for its worst day drop in a month

** Tech-heavy Nasdaq .IXIC falls 1.2% on Friday

(Reporting by Nikhil Sharma)

((Nikhil.Sharma@thomsonreuters.com;))

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