FT: Companies lost $4.2 trillion amid the AI boom downturn
Companies from the industrial, energy, and mining sectors have lost $4.2 trillion in market value since June amid waning investor interest in artificial intelligence (AI) infrastructure.
As 1news.az reports, this was announced by the Financial Times (FT).
According to the publication, this includes suppliers of equipment for data centers — gas generators, cooling systems, and fiber-optic networks.
Over the previous 12 months, these companies had added $9.4 trillion in capitalization amid the AI boom. However, the decline in the market value of these companies has erased almost half of the previous gain. In particular, Caterpillar's capitalization has fallen by $214 billion, or 44%, compared with the record level recorded in June. Oklo's shares dropped by 49%, while Comfort Systems and Corning lost about half of their value.
The decline in share prices is linked to investors' concerns about the scale of investments in AI infrastructure and the ability of data center operators to justify rising expenses, including those financed with borrowed funds. Additional uncertainty is created by resistance to the construction of such facilities in the United States.
