Shares of technology companies have remained largely stagnant as concerns about an artificial-intelligence (AI) bubble continue to loom. While chipmaker Nvidia witnessed a slight decline, their shares have still maintained a significant 45% increase over the first six weeks of this year. However, experts caution that the AI stock rally has been overly prolonged and potentially vulnerable to a pullback.
SoftBank, the Japanese tech conglomerate, experienced a substantial surge in their stock, marking their largest daily jump in nearly two years. This sudden spike came as a result of increased sales at their subsidiary, Arm. Arm, a prominent chip-design company, has reaped the benefits of the ongoing AI boom.
Despite its recent success, SoftBank has faced criticism due to its rapid and sometimes reckless approach to startup investments in Silicon Valley over the past decade. Notable missteps, such as their ill-fated backing of WeWork, have tarnished their reputation. However, SoftBank's investments in Uber Technologies, Arm, and other ventures seem to be bearing fruit thus far in 2024.
Meanwhile, Wedbush analysts express skepticism regarding GoPro's ability to meet its previous sales growth targets for 2024 and beyond.
