Tech giants’ market cap falls on AI doubts, high rates; Alphabet, Tesla gain

The market capitalization of top technology giants fell sharply in April, pressured by diminishing enthusiasm for artificial intelligence and a scaling back of expectations for central bank interest rate cuts.

Microsoft’s market value plummeted by USD 232.5 billion, or 7.4%, ending the month at USD 2.89 trillion. Meta Platforms Inc. also suffered a drop of USD 146.8 billion, or 11.9%, ending at USD 1.09 trillion, following a lower-than-expected revenue forecast and rising expenses associated with burgeoning AI costs.

Nvidia Corp’s market cap fell 4.4% to USD 2.16 trillion, driven by diminishing AI optimism and concerns over slowing revenue growth from competitor chipmakers, with its stock further declining on Wednesday following weak guidance from rival Advanced Micro Devices.

European luxury conglomerate LVMH saw its market cap decline by about 8% to USD 415.1 billion as its first-quarter sales growth slowed to 3%, with higher prices deterring consumer purchases of its high-end products.

Conversely, Alphabet Inc saw its market cap surge 7.3% to USD 2.02 trillion, buoyed by the announcement of its first-ever dividend, a USD 70 billion stock buyback, and first-quarter earnings that exceeded expectations.

Electric car maker Tesla Inc saw its market value increase by 4.4% to USD 584.4 billion, boosted by the removal of regulatory barriers in China that had previously hindered the rollout of its autonomous driving technology.

(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; editing by Christina Fincher)