CNBC Daily Open: Chipping away at the AI boom - CNBC

What the report says

CNBC reported that selling pressure in artificial intelligence-linked stocks intensified in Tuesday trading in Asia, adding to concerns that the technology rally is weakening. The sharpest moves came in South Korea, where Samsung and SK Hynix dropped by double digits and helped drive the Kospi down 10%, triggering market circuit breakers. CNBC said the index is now roughly 45% below its June peak, while technology-heavy declines also spread to Japan’s Nikkei.

The report linked the latest stress in Asia to weakness on Wall Street, particularly in Nvidia. CNBC said Nvidia shares fell more than 5% after the network confirmed the company is in discussions with OpenAI over a possible $250 billion backstop to support AI infrastructure plans. That decline pushed Nvidia’s market value just under $4.8 trillion, allowing Apple, valued at $4.95 trillion, to retake the title of the world’s most valuable company.

CNBC’s daily market briefing also highlighted several broader developments. LVMH reported a 3% increase in second-quarter sales, with watches and jewelry described as the strongest segment, while demand from U.S. consumers helped offset slower conditions in Europe and China. In Europe, France and Spain were continuing to fight major wildfires, with more evacuations reported and another heatwave expected to complicate containment efforts.

The outlet also said oil prices continued to fall as hopes rose for de-escalation between the U.S. and Iran, a development being watched ahead of the Federal Reserve’s next policy meeting. Separately, CNBC noted that SpaceX had lost more than $1.2 trillion in market capitalization since its June high, based on recent trading cited in the article.