{"id":31929,"date":"2025-10-10T09:28:22","date_gmt":"2025-10-10T09:28:22","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=31929"},"modified":"2025-10-10T09:28:22","modified_gmt":"2025-10-10T09:28:22","slug":"nasdaq-100-holds-firm-amid-ai-fuelled-valuation-fears","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/nasdaq-100-holds-firm-amid-ai-fuelled-valuation-fears\/","title":{"rendered":"Nasdaq 100 Holds Firm Amid AI-Fuelled Valuation Fears"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image_fx-56-1024x559.png\" alt=\"\" class=\"wp-image-20480\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nasdaq 100 rose 0.2% to 25,164.88, maintaining momentum near record highs.<\/li>\n\n\n\n<li>Concerns increase over AI-linked leverage and overinvestment risks, led by OpenAI\u2019s $1 trillion infrastructure plan.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The <strong>Nasdaq 100<\/strong> extended modest gains on Friday, rising <strong>0.2% to 25,164.88<\/strong>, as investors balanced optimism about artificial intelligence (AI) growth with growing concerns over the sustainability of technology valuations.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The tech-laden Nasdaq enjoyed the biggest percentage gain, helping drive US stocks higher, boosted by artificial intelligence-related megacaps that have led market gains so far this year <a href=\"https:\/\/t.co\/L0Rv0PhHH4\">https:\/\/t.co\/L0Rv0PhHH4<\/a> <a href=\"https:\/\/t.co\/FvqysT8dhn\">pic.twitter.com\/FvqysT8dhn<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1976161955967635746?ref_src=twsrc%5Etfw\">October 9, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The rally, largely driven by the \u201cMagnificent Seven\u201d and their AI-linked ventures, is now facing scrutiny from market strategists who see parallels to the late-1990s dot-com boom.<\/p>\n\n\n\n<p>Analysts warn that the <a href=\"https:\/\/t.co\/wOUkELP0gN\" target=\"_blank\" rel=\"noopener\" title=\"\">market\u2019s dependence on AI spending<\/a>, particularly from <strong>OpenAI, Microsoft, Nvidia, and Oracle<\/strong>, is creating both strong momentum and significant systemic risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">The Trillion-Dollar Question<\/h2>\n\n\n\n<p>At the centre of the current market debate is <strong>OpenAI\u2019s trillion-dollar investment plan<\/strong>, an ambitious effort to build <strong>16 gigawatts of data centres worldwide<\/strong> and expand its cloud infrastructure through partnerships with <strong>Oracle and Nvidia<\/strong>.<\/p>\n\n\n\n<p>The sheer scale exceeds any historic capital expenditure cycle, raising questions about both financing feasibility and power supply constraints.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">OpenAI and Nvidia. Oracle and OpenAI. Nvidia and Oracle. Today on the Big Take: the AI giants making circular deals \u2014 and why some analysts are skeptical <a href=\"https:\/\/t.co\/b9hHfUuhMC\">https:\/\/t.co\/b9hHfUuhMC<\/a> <a href=\"https:\/\/t.co\/nSBAHCbO1f\">pic.twitter.com\/nSBAHCbO1f<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1976045326667542809?ref_src=twsrc%5Etfw\">October 8, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Estimates suggest that OpenAI\u2019s <a href=\"https:\/\/t.co\/6BEHJcNY4o\" target=\"_blank\" rel=\"noopener\" title=\"\">commitments total nearly $1 trillion<\/a>, which equals about <strong>3.4% of U.S. GDP<\/strong> and around one-quarter of all non-residential private investment recorded in 2024.<\/p>\n\n\n\n<p>Around <strong>$100 billion<\/strong> of that total is expected to come from Nvidia and other partners, but analysts question how the remaining <strong>$800 billion<\/strong> will be financed through cash flow, equity, or debt markets.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">WATCH: TSMC posted a 30% year-over-year jump in Q3 revenue to just over $32 billion, beating forecasts as AI-driven demand from customers like Nvidia and Apple offset weaker consumer-electronics chips <a href=\"https:\/\/t.co\/4B5yQkGM6i\">https:\/\/t.co\/4B5yQkGM6i<\/a> <a href=\"https:\/\/t.co\/l4rO1VFTxH\">pic.twitter.com\/l4rO1VFTxH<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1976311692985270340?ref_src=twsrc%5Etfw\">October 9, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Any of these paths would represent unprecedented levels of fundraising in corporate history.<\/p>\n\n\n\n<p>Analysts warn that the impact of OpenAI failing to secure required funding could ripple through the entire AI supply chain.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Market Context<\/h2>\n\n\n\n<p>Despite these concerns, the <strong>Nasdaq 100<\/strong> remains close to record highs. Resilient earnings from major technology firms and persistent investor appetite for growth continue to provide support.<\/p>\n\n\n\n<p>Artificial intelligence remains the dominant narrative in markets, with <strong>Microsoft, Amazon, and Meta<\/strong> collectively expected to spend around <strong>$335 billion<\/strong> this year on <a href=\"https:\/\/t.co\/Z9Chtro3tt\" target=\"_blank\" rel=\"noopener\" title=\"\">AI-related capital expenditure<\/a>.<\/p>\n\n\n\n<p>However, the concentration of market value within a handful of companies highlights potential vulnerability if any disruption occurs in the AI financing cycle.<\/p>\n\n\n\n<p>The Nasdaq 100\u2019s forward price-to-earnings ratio currently stands near <strong>29 times<\/strong>, which is significantly higher than its 10-year average, pointing to elevated valuation risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The <strong>Nasdaq 100 (NAS100)<\/strong> index is trading around <strong>25,164.88<\/strong>, up <strong>0.20%<\/strong> on the day, as technology stocks continue to show resilience despite broader market caution.<\/p>\n\n\n\n<p>The tech-heavy benchmark remains near record highs, driven by sustained investor enthusiasm around artificial intelligence, cloud computing, and semiconductor sectors, while recent signs of cooling inflation have also lent support to equity sentiment.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/1_image-15-1024x449.jpg\" alt=\"\" class=\"wp-image-31930\" \/><\/figure>\n\n\n\n<p>From a <strong>technical perspective<\/strong>, NAS100 maintains a strong bullish structure. The index is comfortably trading above its <strong>5-, 10-, and 30-day moving averages<\/strong>, reflecting healthy trend alignment across short- and medium-term indicators.<\/p>\n\n\n\n<p>The <strong>MACD<\/strong> remains in positive territory, though its histogram shows modest weakening, hinting that upward momentum may plateau after the long stretch of gains since mid-2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Outlook<\/h2>\n\n\n\n<p>While the broader uptrend remains intact, the market\u2019s growing reliance on AI-related investment and speculative expectations surrounding OpenAI\u2019s expansion make it more fragile.<\/p>\n\n\n\n<p>Any delay in funding or shift in monetary policy that reduces liquidity could lead to a correction.<\/p>\n\n\n\n<p>For now, traders are watching upcoming earnings from major AI players and economic data that may influence <strong><a href=\"https:\/\/t.co\/PkFE4CeMYO\" target=\"_blank\" rel=\"noopener\" title=\"\">Federal Reserve rate expectations<\/a><\/strong>. These will be key in determining whether the current rally is supported by fundamentals or driven by speculation.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Nasdaq 100 edged higher on Friday, even as growing scrutiny over OpenAI\u2019s trillion-dollar ambitions reignited fears of an artificial intelligence bubble that mirrors the dot-com era. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":20480,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11],"class_list":["post-31929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/31929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=31929"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/31929\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/20480"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=31929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=31929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=31929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}