After Early AI Mania, Concerns Raised Over Actual Economics of AI; 'Tech Earnings Kick Off This Week With Netflix; AI Is Now a Risk.' - Barron's

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Barron's reports on tech stocks and emerging concerns over the financial impact of large AI-related expenses, investing and associated risk.

"... [T]he early mania over generative artificial intelligence has become more nuanced in the second half [of 2023]. Following the initial hype, there are concerns about the economics of AI, which involves non-trivial investment in pricey processors and other hardware, with an uncertain payoff. ... AI investments now threaten ... 'year of efficiency' margin improvements that Meta Platforms ... and other tech firms have been touting. It’s all unfolding amid new worries about the near-term prospects for corporate IT spending. ..."

Meanwhile, even though NASDAQ Tech stocks had a strong showing earlier in 2023, with the Nasdaq Composite rising 32% over the first half of the year, tech momentum is now gone. The same index is down 1% since the end of June.

Click here for 'Tech Earnings Kick Off This Week With Netflix. AI Is Now a Risk.' - Barron's 10.23.23


Key Words: Tech Stocks, AI, Artificial Intelligence, IT, Business, Economy, NASDAQ, Investment

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