"BlackRock also reduced its stake"...Nvidia, SpaceX, Micron warn of AI bubble 'collapse'

▲ Artificial Intelligence (AI), Nvidia (NVDA), SpaceX (SPCX), Micron (MU), Bear Market/AI Generated Image

Amid warnings that the artificial intelligence (AI) investment frenzy has created a stronger capital concentration than during the dot-com bubble, Nvidia (NVIDIA, NVDA), SpaceX (SpaceX, SPCX), and Micron Technology (Micron Technology, MU) have been identified as AI stocks exposed to correction risks.

According to cryptocurrency specialized media CoinGeek on July 9 (local time), former White House economic advisors Jared Bernstein and Ryan Cummings warned that “the AI bubble is still expanding,” citing the upward trend of AI-related stocks. The two analyzed that technology-focused investments account for approximately 5% of the US Gross Domestic Product (GDP), a higher level than during the dot-com bubble. They added that “aggressive AI investments are significantly reducing the cash reserves of major technology companies.”

BlackRock is also reducing its investment in AI stocks. BlackRock analyst Rick Rieder stated that he is shifting investment direction from direct beneficiaries of the AI boom to secondary beneficiaries. TeraWulf, a Bitcoin (Bitcoin, BTC) mining company that leased an AI data center to Anthropic for 20 years, was cited as a representative example.

Despite the bubble warnings, Nvidia closed at $204 on July 8, up 3.65%, recording its largest bullish candle since June 1. The Chaikin Money Flow (CMF) was 0.08, indicating stronger buying pressure than selling pressure. The Average Directional Index (ADX) also showed an upward trend, with the June 22 high of $212 suggested as the upper price level.

SpaceX closed at $148 on July 8, down 0.81%, falling below its Nasdaq listing price of $150. ARK Invest purchased $16 million worth of SpaceX shares on the same day. If the $145 support line breaks, it could fall to the IPO price of $135, and the Moving Average Convergence Divergence (MACD) remained in negative territory.

Micron fell below the psychological support level of $1,000 on July 6, and buying pressure appeared in trading volume indicators for two consecutive days. The Relative Strength Index (RSI) was recorded at 49, indicating a weakening of buying pressure despite recent gains. If buying pressure weakens, the $900 support level was suggested as the next price target.

[Article Key Summary]

-Former White House economic advisors warned that “the AI bubble is still expanding,” stating that technology-focused investments account for approximately 5% of US GDP.

-Nvidia rose 3.65% on July 8, but SpaceX fell to $148, below its Nasdaq listing price of $150.

-Micron broke the $1,000 support level, with an RSI of 49 and the $900 support level presented as key indicators.

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