The AI hype cycle faces its first setback as summer doldrums drag on some of this year’s biggest winners

https://markets.businessinsider.com/news/stocks/ai-artificial-intelligence-stocks-nvidia-semiconductors-summer-market-slump-etfs-2023-8

Summary:

1. Nvidia is on track for its first monthly decline of the year, with shares down 7%.

Other semiconductor stocks and AI-tracking ETFs are also struggling, with significant declines in their share prices.

1. Investors are betting against funds tracking the AI sector, with short interest in these ETFs hitting record highs.

2. Factors such as spiking US Treasury yields and concerns about inflation are contributing to the decline in AI-related stocks.

3. The future performance of AI stocks remains uncertain and will be a major focus for the market in the coming months.

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