CNBC Daily Open: AI still under pressure — but some analysts see a year-end rally

Group 1 - The Nasdaq Composite index fell by 0.84%, driven by a decline in technology stocks, with notable drops from Apple, Meta, and Oracle, each retreating over 1% [1] - Nvidia, a key player in the artificial intelligence sector, experienced a nearly 2% loss, with CEO Jensen Huang indicating a projected business of "half a trillion dollars" for 2025 and 2026, which investors will scrutinize in the upcoming third-quarter earnings report [2][3] - Analysts express concerns that any disappointing guidance from Nvidia regarding chip demand could lead to significant negative market reactions, highlighting the high expectations surrounding the company [3] Group 2 - Despite recent sell-offs in the tech sector due to high valuations and capital expenditure concerns, some analysts remain optimistic about a potential year-end rally, suggesting a balance of bullish and bearish signals [4] - HSBC's chief multi-asset strategist believes the likelihood of a "melt-up" in equities towards year-end is greater than the risk of an AI bubble bursting, indicating a positive outlook for investors in the near term [5]