Tech Giants Experience AI Fatigue: Spotlight on Inverse ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 21 2025
0mins
Should l Buy GOOG?
Source: NASDAQ.COM
Short Selling Against AI Stocks: Short sellers have profited $5.6 billion by betting against major AI-linked companies as concerns about the sustainability of the AI boom grow, with significant losses observed in stocks like Meta and NVIDIA.
Market Reactions: The Nasdaq Composite fell 0.7%, contributing to a two-day decline of 1.5%, while short bets against five major tech companies resulted in $2.8 billion in profits for investors.
Investor Sentiment Shift: A report from MIT indicated that 95% of companies are not seeing returns on AI investments, leading to a tempered enthusiasm among investors, with some analysts suggesting the industry may be in a bubble.
Optimism Amidst Downturn: Despite the current pullback, some analysts remain optimistic about AI's future impact on the market, predicting continued growth driven by substantial investments over the next few years.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Resource Potential Unlocking: The new land will allow the company to establish processing facilities outside the mining tenure, preventing sterilization of the orebody, which is expected to facilitate parallel advancements in resource upgrades and exploration efforts.
- Environmental Protection Measures: The company also acquired a separate 163-hectare conservation area aimed at offsetting environmental impacts and supporting operational licensing requirements, demonstrating its commitment to sustainable practices.
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- Long-Term Growth Outlook: TSMC has raised its annual revenue growth forecast for 2024-2029 from 20% to 25%, and with the rapid increase in AI chip demand, the potential for gross margin and profit growth in the coming years is substantial, making it a valuable investment despite its stock reaching all-time highs.
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- Bullish Wall Street Outlook: DA Davidson recently initiated coverage on TSM with a Buy rating and a $450 price target, suggesting significant upside from current levels, reflecting strong market confidence in its future growth.
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- Cloud Growth: Google Cloud achieved a remarkable 48% year-over-year growth in Q4, showcasing its strong performance in the cloud computing market and solidifying its position as a top choice, which is expected to attract more new business and drive future revenue growth.
- AWS Recovery: Amazon Web Services (AWS) reported a 24% revenue growth rate in Q4, marking the fastest pace in 13 quarters, indicating a rising demand for generative AI workloads and enhancing its competitive edge in the market.
- Surge in Capital Expenditures: Google anticipates capital expenditures of $175 billion to $185 billion by 2026, while Amazon expects $200 billion, reflecting both companies' commitment to future AI infrastructure despite market concerns about an AI bubble.
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- Land Acquisition: St George Mining has entered into a binding agreement to acquire 166 hectares of industrial land for 14 million Brazilian reais (approximately A$3.8 million), laying the groundwork for its niobium-rare earths project in Brazil.
- Resource Potential Unlocking: The new land will allow the company to establish processing facilities outside the mining tenure, preventing sterilization of the orebody, which is expected to facilitate parallel advancements in resource upgrades and exploration efforts.
- Environmental Protection Measures: The company also acquired a separate 163-hectare conservation area aimed at offsetting environmental impacts and supporting operational licensing requirements, demonstrating its commitment to sustainable practices.
- Positive Market Outlook: With global niobium demand projected to grow at 6% annually, St George Mining is positioning itself to enter a tightly concentrated and strategically significant market, especially as the U.S. identifies niobium as a critical mineral.
See More
Hyperscalers Set to Boost Cloud Spending Significantly
- Spending Overview: The five largest hyperscalers, including Amazon, Alphabet, Microsoft, Meta, and Oracle, are projected to budget over $700 billion by 2026, reflecting a strong demand for building AI data centers and driving growth in related sectors.
- Capital Expenditure Growth: Amazon plans to spend $200 billion in 2026, a 56% increase from $128.3 billion in 2025; Alphabet's spending is expected to reach $180 billion, with a staggering 97% year-over-year growth, significantly enhancing its market competitiveness.
- Surge in Chip Demand: These five companies are set to spend over $450 billion on GPUs, CPUs, and other AI accelerator chips in 2026, creating substantial market opportunities for chipmakers, particularly for leading firms like Taiwan Semiconductor Manufacturing Company (TSMC).
- Long-Term Growth Outlook: TSMC has raised its annual revenue growth forecast for 2024-2029 from 20% to 25%, and with the rapid increase in AI chip demand, the potential for gross margin and profit growth in the coming years is substantial, making it a valuable investment despite its stock reaching all-time highs.
See More
AI Infrastructure Driving Record Growth
- Momentum Surge: The company's momentum score increased from 89.27 to 92.92, placing it in the top 10% of all stocks tracked by Benzinga Edge, indicating strong price strength and volatility, which enhances market confidence in its future performance.
- Economic Growth Boost: Taiwan's economy experienced a 70% surge in exports in January, the fastest pace in 16 years, driven almost entirely by AI hardware, further solidifying TSM's market position and profitability.
- Bullish Wall Street Outlook: DA Davidson recently initiated coverage on TSM with a Buy rating and a $450 price target, suggesting significant upside from current levels, reflecting strong market confidence in its future growth.
- Strong Financial Performance: TSM's stock has risen 14.63% year-to-date, while the Nasdaq 100 was down 1.88% during the same period, demonstrating its robust performance amid increased Big Tech spending, further solidifying its leadership in the high-end node market.
See More
Comparing AI Investments of Google and Amazon
- Cloud Growth: Google Cloud achieved a remarkable 48% year-over-year growth in Q4, showcasing its strong performance in the cloud computing market and solidifying its position as a top choice, which is expected to attract more new business and drive future revenue growth.
- AWS Recovery: Amazon Web Services (AWS) reported a 24% revenue growth rate in Q4, marking the fastest pace in 13 quarters, indicating a rising demand for generative AI workloads and enhancing its competitive edge in the market.
- Surge in Capital Expenditures: Google anticipates capital expenditures of $175 billion to $185 billion by 2026, while Amazon expects $200 billion, reflecting both companies' commitment to future AI infrastructure despite market concerns about an AI bubble.
- Valuation Comparison: Although Amazon's valuation is relatively lower, both companies are at the top of their respective industries, with projected revenue growth rates for the next 12 months showing Google at 16%, slightly ahead of Amazon's 12%, giving Google a slight edge in investment attractiveness.
See More
India Hosts One of the World's Largest AI Summits
- Global AI Leaders Gather: The India AI Impact Summit in New Delhi from February 19-20 will feature tech leaders like Sundar Pichai of Google and Sam Altman of OpenAI, showcasing India's growing influence in the global AI landscape.
- Trade Agreement Catalyst: The summit coincides with India and the U.S. working towards a new trade agreement, with Modi's government approving approximately $18 billion in semiconductor projects to establish a domestic supply chain, thereby enhancing India's technological prowess.
- AI Market Expansion: OpenAI and Anthropic are setting up operations in India targeting businesses, developers, and government clients, while Google and Meta are expanding data centers to cater to the rapidly growing AI market in the country.
- Nvidia's Market Potential: Despite CEO Jensen Huang's last-minute withdrawal from the summit due to unforeseen circumstances, Nvidia views India as a key growth market, particularly amid U.S. export restrictions on advanced chips to China.
See More
Broadcom's Rise in the AI Sector
- Surging AI Revenue: Broadcom reported a 74% year-over-year increase in AI semiconductor revenue for the latest quarter, with projections indicating that first-quarter revenue will double to $8.2 billion, driven by strong demand for custom accelerators and AI Ethernet switches, significantly boosting overall performance.
- Record Backlog: The company's backlog for AI switches has surpassed $10 billion, reflecting robust market demand amid ongoing AI data center buildouts, which further solidifies Broadcom's position in the industry.
- Differentiated Product Offering: Broadcom has launched the industry's first Wi-Fi 8 access point and switch system, designed to enhance security and speed for enterprises utilizing AI, thereby increasing its competitive edge and attracting more customers.
- Unique Market Positioning: Broadcom's XPUs are custom chips tailored for specific purposes, differentiating them from Nvidia and AMD's general-purpose GPUs, allowing the company to carve out a niche in the competitive AI market and enhancing its strategic positioning for future growth.
See More
