This week, the reporting season of S&P 500 companies for the third quarter basically ended, while the index companies as a whole showed good results relative to consensus forecasts.
However, much of the positive sentiment regarding the reporting period was overshadowed by growing concerns about a potential "bubble" forming amid growing enthusiasm around artificial intelligence. Stocks have been fluctuating due to concerns that inflated valuations of the technology sector, uncontrolled spending by giant AI companies, and a wave of cyclical deals could eventually prove unsustainable.
These concerns came to the fore when Nvidia's semiconductor group presented its latest results on Wednesday. The company, whose chips have made it an integral part of the AI narrative and contributed to the rapid growth of its share price, has shown impressive results. Stocks initially rose globally after the report, but gains lost momentum as concerns about the AI bubble persisted.
Nvidia's reporting was the final note in a chorus of recent statements about the place of AI in corporate America, where companies have emphasized their focus on the rapid adoption of this technology. According to Goldman Sachs, about 47% of S&P 500 companies discussed AI during their conference calls after reporting, especially in the context of productivity and efficiency.