Trends

AI shares shed over US$1 trillion as inflation fears bite

Twenty of the world's most valuable AI and chip stocks lost more than US$1 trillion in value this week, CNBC reports. The slide followed US figures showing inflation hit 3.7% in September, which has investors bracing for more interest rate rises. Investors fear dearer loans will squeeze the debt-funded rush to build AI data centres, and South Korea's chip-heavy Kospi 200 index fell 8.1%, according to The Guardian. Separately, Barclays downgraded server maker Dell, saying businesses typically put just 5% of IT budgets towards AI.

Why it matters: If your super leans on global tech shares, expect bumpier returns. If you're weighing AI spending, you're not behind: Barclays says most businesses commit about 5% of their IT budget.

Source: CNBC · Also reported by The Guardian, CNBC Technology