Zheng Quan Shi Bao·2025-11-09 05:33Core Viewpoint - The recent sell-off in the U.S. tech sector, particularly in AI-related stocks, has led to significant market losses, raising concerns about overvaluation and potential market instability [1][3][4]. Group 1: Market Performance - The Nasdaq index, heavily weighted with tech stocks, experienced a weekly decline of over 3%, marking its worst performance since April [1][3]. - Eight major AI-related companies saw a combined market value loss exceeding $800 billion in a single week, with the total market loss for U.S. AI-related companies nearing $1 trillion [1][3]. - Nvidia alone lost approximately $348.5 billion in market value, with its stock dropping over 7% [3]. Group 2: Investor Sentiment - Concerns over high valuations in AI companies have prompted investors to withdraw from the market, resulting in the first weekly decline in three weeks for U.S. stocks [3][4]. - Retail investors, known for buying on dips, chose to remain cautious this week, reducing their holdings following Palantir's disappointing earnings report [4]. Group 3: Company-Specific Issues - Palantir's recent earnings report triggered a sell-off, as investors expressed worries about its high valuation [3][4]. - Meta has been implicated in generating significant revenue from fraudulent advertisements, with internal documents revealing that about $16 billion, or 10% of its projected 2024 revenue, comes from such ads [7][8]. Group 4: Broader Economic Concerns - The tech sector's struggles coincide with signs of weakness in the U.S. labor market and declining consumer confidence, as indicated by the Michigan Consumer Sentiment Index hitting a three-year low [4]. - Analysts are increasingly concerned that if investor confidence does not rebound, other sectors may also face repercussions, leading to broader market volatility [5].