Nasdaq-100 Sees Worst Quarter in 3 Years: What Lies Ahead for ETFs?

Core Insights - The Nasdaq 100 has experienced its worst quarter in nearly three years, declining 8.3% due to fears of an AI bubble and other economic pressures [1] - Major tech stocks have seen significant declines, with NVIDIA down 28% and Broadcom down 33% from their respective peaks [2] - Concerns are rising that AI investments are outpacing actual demand, particularly highlighted by the cost-effective AI model developed by DeepSeek [3][4] - Investor anxiety has increased following warnings about oversupply in AI infrastructure, leading to project cancellations by Microsoft [5] - Despite uncertainties, major tech companies are committed to over $300 billion in capital expenditures for the current fiscal year [6] - The Nasdaq 100 remains elevated in valuation, with a P/E ratio above the two-decade average, despite a recent decline [7][8] - OpenAI anticipates tripling its revenues this year and is in talks to raise up to $40 billion from investors [9] - The industry sentiment remains moderately bearish, but there may be buying opportunities for risk-tolerant investors [10]