Gemini

GPT-4o

Andy

The Big Tech artificial intelligence bonanza is showing signs of fatigue as nearly every technology firm in the global top 20 saw its market capitalization shrink between July and August.
Leading the retreat is Intel, whose stocks plummeted after a disappointing Q2 earnings <a href="https://www.intc.com/news-events/press-releases/detail/1704/intel-reports-second-quarter-2024-financial-results" target="_blank" rel="noopener nofollow">announcement</a> on Aug. 1. The company failed to meet its quarterly target and wound up down 1% for revenue year-over-year.
<h2 id="intel-s-generative-ai-pivot">Intel’s generative AI pivot</h2>
While that doesn’t sound like a huge problem, the company took the earnings call as an opportunity to announce a 15% staff reduction. This is evidently the next phase in its plan to <a href="https://seekingalpha.com/article/4690013-intels-strategic-pivot-unveiling-investment-opportunities" target="_blank" rel="noopener nofollow">pivot</a> the business toward the generative AI sector, which will result in one of the biggest tech layoffs in recent memory, with some 15,000 employees being cut.
Intel stock fell by about 18% in after-hours trading, with many analysts citing the layoffs as a primary contributing factor. As of the time of this article’s publication on Aug. 2, its market capitalization has&nbsp;<a href="https://companiesmarketcap.com/semiconductors/largest-semiconductor-companies-by-market-cap/" target="_blank" rel="noopener nofollow">dropped</a> by more than 28% in the past 24 hours. 
<h2 id="nvidia-s-regulatory-concerns">Nvidia’s regulatory concerns</h2>
Intel wasn’t the only big tech outfit to start the month of August with a shrinking market capitalization. In fact, as of the time of this article’s publication, every technology firm in the top 20 companies by global market cap is down over the past 30 days, with the exceptions of Apple and Tesla.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-08/7e35e7d7-5764-4f35-9ed0-d1b69de9a096.jpg" alt="Tech stocks plummet as Intel nosedives, Nvidia faces antitrust probe" title="">
 <figcaption style="text-align: center;">
 Top 10 market capitalizations. Source: CompaniesMarketCap
 </figcaption>
</figure>
Perhaps most noteworthy is Nvidia’s current market capitalization of $2.62 trillion, down more than 2% over the past 24 hours. The world’s most valuable chipmaker’s fate is directly tied to many of the other firms in the top 20 due to big tech’s reliance on Nvidia GPU chips to train AI. 
Yet Nvidia faces little in the way of global competition. Arguably, the only true mitigating factors in its success are good old-fashioned market demand and, potentially, the United States government. 
According to a report from The Information, the US Department of Justice is <a href="https://www.theinformation.com/articles/nvidia-faces-doj-antitrust-probe-over-complaints-from-rivals" target="_blank" rel="noopener nofollow">investigating</a> Nvidia over alleged antitrust violations ranging from supposedly threatening customers with retaliation if they used competitor’s products to purchasing startups in a concerted effort to stifle competition. 
<h2 id="amazon-s-ai-ambitions">Amazon’s AI ambitions</h2>
Another noteworthy Q2 slide comes in the form of Amazon’s sudden 9.1% drop in market cap over 24 hours after <a href="https://www.aboutamazon.com/news/company-news/amazon-earnings-q2-2024-highlights" target="_blank" rel="noopener nofollow">reporting</a> $147.98 billion in revenue for Q2 vs. an expected $148.56 billion. 
Accompanying the somewhat weak earnings was CEO Andy Jassy’s <a href="https://events.q4inc.com/attendee/390443625" target="_blank" rel="noopener nofollow">declaration</a> that Amazon was moving on from its two-year spending fast and would be <a href="https://finance.yahoo.com/news/amazon-slides-spending-playbook-risks-085240393.html" target="_blank" rel="noopener nofollow">prioritizing</a> bringing AI products and services to market over profits. 
Related: <a href="https://cointelegraph.com/news/google-gemini-ai-model-dominates-benchmarks-beats-gpt-4o-claude-3">Google’s new Gemini AI model dominates benchmarks, beats GPT-4o and Claude-3</a>

Tech stocks plummet as Intel nosedives, Nvidia faces antitrust probe

Table of Contents

Cointelegraph

Other articles published on Aug 2, 2024

Top Crypto Gainers Today Aug 01 – Decentralized Social, Decred, Centrifuge, Tellor

Sharpe AI Announces $SAI Token Listing on Gate.io

Bitcoin Faces Significant Price Fluctuations Due to Multiple Factors

Mt. Gox Bitcoin balance down to $3B – Potential effects on BTC

Just-In: GameStop Short Seller Andrew Left’s Deleted X Posts Emerge Amid Lawsuit

Ethereum Whales Boost Holdings

Join our free newsletter for daily crypto updates!