Tech giants' market cap falls on AI doubts, high rates; Alphabet, Tesla gain
Reuters
Published May 02, 2024 06:13AM ET
(Reuters) - The market capitalisation of top technology giants fell sharply in April, pressured by diminishing enthusiasm for artificial intelligence and a scaling back of expectations for central bank interest rate cuts.
Microsoft (NASDAQ:MSFT)'s market value plummeted by $232.5 billion, or 7.4%, ending the month at $2.89 trillion. Meta Platforms Inc (NASDAQ:META) also suffered a drop of $146.8 billion, or 11.9%, ending at $1.09 trillion, following a lower-than-expected revenue forecast and rising expenses associated with burgeoning AI costs.
Nvidia Corp (NASDAQ:NVDA)'s market cap fell 4.4% to $2.16 trillion, driven by diminishing AI optimism and concerns over slowing revenue growth from competitor chipmakers, with its stock further declining on Wednesday following weak guidance from rival Advanced Micro Devices (NASDAQ:AMD). European luxury conglomerate LVMH saw its market cap decline by about 8% to $415.1 billion as its first-quarter sales growth slowed to 3%, with higher prices deterring consumer purchases of its high-end products.
Conversely, Alphabet (NASDAQ:GOOGL) Inc saw its market cap surge 7.3% to $2.02 trillion, buoyed by the announcement of its first-ever dividend, a $70 billion stock buyback, and first-quarter earnings that exceeded expectations.
Electric car maker Tesla (NASDAQ:TSLA) Inc saw its market value increase by 4.4% to $584.4 billion, boosted by the removal of regulatory barriers in China that had previously hindered the rollout of its autonomous driving technology.
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Written By: Reuters
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