{"id":48106,"date":"2025-10-12T16:36:17","date_gmt":"2025-10-12T16:36:17","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=29491"},"modified":"2025-10-12T16:36:17","modified_gmt":"2025-10-12T16:36:17","slug":"nasdaq-100-holds-firm-as-fears-on-ai-fuelled-valuation-looms","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/pl-eu\/analysis\/nasdaq-100-holds-firm-as-fears-on-ai-fuelled-valuation-looms\/","title":{"rendered":"Nasdaq holds firm as fears on AI-fuelled valuation looms"},"content":{"rendered":"\n<p>The\u00a0Nasdaq 100\u00a0extended modest gains on Friday, rising\u00a00.2% to 25,164.88, as investors balanced optimism about artificial intelligence (AI) growth with growing concerns over the sustainability of technology valuations.<\/p>\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\u00a0heavy dependence on AI spending, particularly from\u00a0OpenAI, Microsoft, Nvidia, and Oracle, is creating both strong momentum and significant systemic risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The trillion-dollar question on AI investment plan<\/h2>\n\n\n\n<p>At the centre of the current market debate is\u00a0OpenAI\u2019s trillion-dollar investment plan, an ambitious effort to build\u00a016 gigawatts of data centres worldwide\u00a0and expand its cloud infrastructure through partnerships with\u00a0Oracle and Nvidia.<\/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\u00a0commitments total nearly $1 trillion, which equals about\u00a0<strong>3<\/strong>.4% of U.S. GDP\u00a0and around one-quarter of all non-residential private investment recorded in 2024.<\/p>\n\n\n\n<p>Around\u00a0$100 billion\u00a0of that total is expected to come from Nvidia and other partners, but analysts question how the remaining\u00a0$800 billion\u00a0will be financed through cash flow, equity, or debt markets.<\/p>\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\">Tech and AI market context<\/h2>\n\n\n\n<p>Despite these concerns, the\u00a0Nasdaq 100\u00a0remains 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\u00a0Microsoft, Amazon, and Meta\u00a0collectively expected to spend around\u00a0$335 billion\u00a0this year on\u00a0AI-related capital expenditure.<\/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 forward price-to-earnings ratio of the Nasdaq 100 currently stands near\u00a029 times, which is significantly higher than its 10-year average, pointing to elevated valuation risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical analysis: NAS100<\/h2>\n\n\n\n<p>The\u00a0Nasdaq 100 (NAS100)\u00a0index is trading around\u00a025,164.88, up\u00a00.20%\u00a0on 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\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2026\/04\/image-15-1024x449.jpg\" alt=\"nas100\" class=\"wp-image-31930\" title=\"image - VT Markets\" \/><\/figure>\n\n\n\n<p>From a\u00a0technical perspective, NAS100 maintains a strong bullish structure. The index is comfortably trading above its\u00a05-, 10-, and 30-day moving averages, reflecting healthy trend alignment across short- and medium-term indicators.<\/p>\n\n\n\n<p>The\u00a0MACD\u00a0remains 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\">Cautious outlook on tech stocks<\/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\u00a0Federal Reserve rate expectations. These will be key in determining whether the current rally is supported by fundamentals or driven by speculation.<\/p>\n\n\n\n<p>Click\u00a0<a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>\u00a0to open account and start trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0Nasdaq 100\u00a0extended modest gains on Friday, rising\u00a00.2% to 25,164.88, as investors balanced optimism about artificial intelligence (AI) growth with growing concerns over the sustainability of technology valuations. 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. Analysts <a href=\"https:\/\/www.vtmarkets.com\/pl-eu\/analysis\/nasdaq-100-holds-firm-as-fears-on-ai-fuelled-valuation-looms\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":102,"featured_media":48165,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-48106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/posts\/48106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/comments?post=48106"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/posts\/48106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/media\/48165"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/media?parent=48106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/categories?post=48106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/tags?post=48106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}