The warnings on the artificial intelligence valuations grew louder. On Tuesday, JPMorgan Chase CEO Jamie Dimon said that elevated asset values are a “category of concern.”
JPMorgan posted strong quarterly results yesterday. The firm commented on the overwhelming nature of the magnificent seven and AI. However, the bank is staying anchored to facts and reality. It will seek tangible outcomes before investing its time, energy, and funds into AI-related projects.
Growing concerns for AI valuations sent Arista Networks (ANET) stock lower. ANET stock fell by 5.87% to close at $138.79. In addition, Nvidia (NVDA) said that Oracle (ORCL) and Meta Platforms (META) would use its Spectrum-X Ethernet networking device solutions. Investors hoped that Oracle would buy Arista hardware.
Western Digital (WDC) lost nearly 5% to close at $113.13. Any weakness in the AI space would hurt demand for storage. Shares of Seagate (STX) also faced selling pressure.
Weak bitcoin (BTC-USD) prices hurt Strategy (MSTR) stock. BTC closed at around $113,500 last night. The most popular cryptocurrency has several short-sellers betting against its rise. Strategy recently raised $27.3 million. I purchased another 220 BTC and held 640,250 BTC as of October 13.
Investors may buy Bitcoin-related ETFs instead of holding MSTR stock if they want exposure. Still, BTC ETFs and MSTR would fall if the underlying cryptocurrency were to fall.
