Asian shares slip as AI investment concerns weigh on tech sector
Markets fell on Monday amid worries over AI capital expenditure and upcoming earnings reports from Apple, AMD and Palantir.
Asian share markets declined on Monday as investors expressed concerns regarding the sustainability of the artificial intelligence investment boom, according to the Economic Times.
Japan's Nikkei fell 0.5 per cent, while South Korea lost 0.8 per cent. The MSCI index of Asia-Pacific shares outside Japan eased 0.4 per cent.
The tech sector faces pressure following Intel's near 29 per cent tumble on Friday. Investors are now looking toward earnings reports from Apple, AMD and Palantir.
Gold prices rose 0.6 per cent to $3,898 an ounce after hitting a one-year low. Meanwhile, Brent futures dipped 1.5 per cent to $111.72 a barrel.
Goldman Sachs analysts expect capital expenditure by hyperscalers to almost double to $800 billion this year, potentially rising to $1.2 trillion in 2027.
Ben Snider, Goldman's chief US equity strategist, noted that while earnings growth is strong, it is no longer accelerating. He stated that AI investment spending will continue to grow, but the growth rate of AI capex is peaking.