I keep hearing about Nasdaq lagging because of 'angst over AI spending'. What does this actually mean? Are companies spending too much on AI? Should regular people with investments be concerned about this?
Investors are basically concerned that companies are spending massive amounts on AI infrastructure and development without clear evidence that it's actually paying off in profits yet, so there's worry the returns won't justify the massive capital burn. For regular folks with investments, it's worth paying attention to but not necessarily panic-inducing - market wobbles happen and if your portfolio is diversified you're usually fine, though keeping an eye on how the companies you're invested in are actually using their AI spending makes sense.
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