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Gary Black, managing partner, investor at The Future Fund, reported that stocks declined in pre-market trading, with the SPX down 0.4% and the NDX falling 1.1%. This move followed weak AI chip guidance from AVGO and in-line results from CRWD, raising investor concerns about elevated technology sector valuations in advance of next week's massive $75 billion SPCX initial public offering.
Gary Black also pointed out that Bitcoin’s continued fall—now down 50% since its October record—has added to broader market worries.
Earlier this year, Black highlighted growing Wall Street interest in custom AI chips, with AVGO shares climbing ahead of earnings. He also noted that SK Hynix became the 15th company to reach a $1 trillion market cap, joining TSMC and Samsung Electronics among Korean chipmakers. These developments have kept chip stocks in focus as investor sentiment shifts.