Week of 07/15-07/19 Stock Market Indexes Drop, CrowdStrike Worldwide Outage

Stock market indexes declined this week, mainly driven by tech stocks AI chip export pressures, with the S&P 500 having its worst weekly performance since April. The selloff in semiconductors went into full gear as geopolitical headwinds emerged and investor worries grew over a report regarding the possibility of tighter US restrictions on exports of semiconductor technology to China. CrowdStrike global IT outage began on Thursday afternoon and its still affecting businesses such as airports, banks, hospitals, and broadcasters worldwide. Microsoft users reported experiencing the "blue screen of death", with perhaps the most concerning being emergency services being impacted by the outage. This caused CrowdStrike's stock (CRWD) to drop over 20% on Thursday and settled with losses just over 12% on Friday's market session. EV stocks fell on Friday after former President Trump made comments during his speech at the Republican Convention to end the electric vehicle mandate on day one. Bitcoin surged to $66,000 per token this week; giving stocks like MicroStrategy (MSTR), Riot Platforms (RIOT), and Coinbase (COIN) a 10% boost.

What is an AI Chip? Why are tech companies focusing on this technology?

An AI chip, also known as an artificial intelligence chip, is a specialized hardware component designed to accelerate AI-related tasks such as machine learning and deep learning algorithms. These chips are important to tech companies as they enable faster processing and execution of AI tasks, leading to improved performance, efficiency, and scalability in AI applications. By using AI chips, tech companies can enhance their products and services, deliver cutting-edge technology solutions, and stay competitive in the rapidly evolving AI market.