Investors are increasingly becoming concerned that AI companies may be grossly overvalued — and could struggle to justify their enormous hype by successfully ratcheting up profits.

So it’s naturally alarming that shares of AI industry stalwarts, including Oracle, Nvidia, AMD, and Amazon, fell sharply on Tuesday, following concerns over enormous valuations that have propped up the entire US economy for months now.

AI chipmaker Nvidia’s shares dipped just shy of four percent, while competitor AMD’s slid just under three percent today. Software giant Palantir was hit hardest, dropping over nine percent, despite beating Wall Street expectations with its Q3 earnings.

What all of these companies have in common is an enormous price-to-earnings ratio (P/E), CNBC reports, which measures a firm’s

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