Tech stocks in the US stock market shrank in August, with Eli Lilly and Berkshire Hathaway standing out
In August, US technology stocks faced a market correction, with market capitalization generally shrinking. Alphabet, Amazon, and Tesla saw their market capitalization drop by 4.7%, 4.5%, and 7.7% respectively. Due to lower-than-expected gross margin forecasts, NVIDIA's market capitalization fell to $2.92 trillion at the end of August. Meanwhile, pharmaceutical company Eli Lilly saw its market capitalization rise by nearly 20%, becoming the company with the largest market increase, while Berkshire Hathaway's market capitalization surpassed $1 trillion for the first time
According to the financial news app Zhitong Finance, due to concerns about the rising cost of artificial intelligence infrastructure and the increasing risk of economic recession, major tech stocks were particularly vulnerable during the market pullback in August, leading to a decline in their market capitalization.
Last month, worries about Alphabet (GOOGL.US) earnings arose as YouTube ad sales slowed down, causing a 4.7% decrease in Alphabet's market value. The U.S. judge's ruling against Google for violating antitrust laws, as well as the emergence of new competitors like OpenAI developing AI-based search engine prototypes, also contributed to the decline in Google's stock price.
Affected by a slowdown in online sales, Amazon (AMZN.US) saw a 4.5% decrease in market value.
Tesla (TSLA.US) experienced a 7.7% drop in market value last month after struggling with weak earnings in the second quarter and Canada's plan to impose a 100% new tariff on electric cars manufactured in China. As the world's highest-valued car manufacturer, Tesla started exporting electric cars made in Shanghai to Canada last year, and the Canadian government's plan raised concerns about exporting from the higher-cost U.S. production base or affecting profits.
NVIDIA (NVDA.US), which holds over 80% of the AI chip market share, as a major driver and beneficiary of AI development, saw a unique position. Its market value fell by 7.7% to $2.92 trillion in the last week of August. The company had previously expected lower-than-expected gross margins in the third quarter and revenue only meeting expectations, disappointing investors who were anticipating stronger performance.
On the positive side, U.S. pharmaceutical company Eli Lilly (LLY.US) saw a nearly 20% surge in market value, becoming the company with the largest market gain, mainly due to strong sales and the launch of a weight-loss drug that significantly reduces the risk of type 2 diabetes in overweight adults.
In the eyes of many, Berkshire Hathaway (BRK.A.US) represents the U.S. economy. At the end of August, Berkshire Hathaway's market value surpassed $1 trillion for the first time, reflecting investors' confidence in this conglomerate built by Warren Buffett over nearly 60 years.
Meta (META.US) also saw a nearly 10% increase in market value, as its second-quarter revenue exceeded market expectations and third-quarter revenue is expected to experience strong growth, indicating that strong digital ad spending on its platform may offset the costs of its AI investments