Tech market valuations fall on AI costs, recession concerns; Eli Lilly, Berkshire earnings Reuters

(Corrects story to remove Delta Corp, which was accidentally included in the list for both graphics)

(Reuters) – The market value of major technology companies fell in August amid concerns about rising artificial intelligence infrastructure costs and rising recession risks, which could make their shares particularly vulnerable to a market correction.

Last month, Alphabet (NASDAQ:) Inc lost 4.7% of its market value as concerns grew about its earnings as YouTube’s ad sales slowed. The stock fell after a U.S. judge ruled that Google violated antitrust laws and a new competitor emerged in OpenAI, which is developing an AI-powered search engine prototype.

Amazon.com Inc (NASDAQ:)’s market cap fell 4.5% as online sales slowed.

Tesla’s (NASDAQ:) market cap fell 7.7% last month after the company reported weak second-quarter earnings and news that Canada plans to impose a new 100% tariff on Chinese electric vehicles.

The world’s most valuable automaker began shipping electric vehicles made in Shanghai to Canada last year, and Ottawa’s plan raised concerns about the potential revenue impact of exporting from its more expensive U.S. production base.

Meanwhile, Nvidia (NASDAQ:)’s market cap fell 7.7% to $2.92 trillion in the last week of August, after the company disappointed investors who had been expecting strong results by forecasting lower-than-expected gross margins for the third quarter and only meeting expectations for revenue.

With more than 80% of the AI ​​chip market, NVIDIA is uniquely positioned to be both the biggest supporter and beneficiary of rapidly growing AI development.

On the positive side, U.S. drugmaker Eli Lilly (NYSE:) led the market gains with its market cap soaring by about 20%, thanks to strong sales and the launch of a weight-loss drug that significantly reduces the risk of developing type 2 diabetes in overweight adults.

Berkshire Hathaway (NYSE:)’s market cap topped $1 trillion for the first time in late August, reflecting investor confidence in the conglomerate Warren Buffett built over a 60-year period that many see as a proxy for the U.S. economy.

Meta (NASDAQ:)’s market cap also rose nearly 10% after the company reported better-than-expected second-quarter revenue and forecasted strong growth in the July-September quarters, suggesting that its heavy investment in digital advertising on its platform could offset the cost of its AI investments.