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Nvidia: Tech stocks take a pounding as hedge fund Elliott warns AI is in ‘bubble land’

Intel suffers its single biggest one-day drop in decades, as sentiment sours amid overextended valuations and a darkening economic outlook.

Sentiment worsened after the Financial Times obtained on Friday a recent letter from hedge fund Elliott Management reportedly telling investors that Nvidia and the entire megacap tech sector was living in “bubble land” with artificial intelligence “overhyped.” Elon Musk said last week that Tesla’s voracious demand for Huang’s H100 processors to power its upcoming data center in Austin means the carmaker will double down on investment in its Dojo chip. Optimized for training neural networks based on video data rather than text, Tesla hopes its proprietary design will solve autonomous driving if Nvidia cannot.

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