AI-linked firms struggle amid worries over investment returns

AI-linked firms continued to struggle amid worries about the sustainability of the colossal investment boom that pushed stock markets to multiple record highs in the first half of the year.

Traders are growing increasingly worried about when the vast sums pumped into the sector will see returns, if any, while rising interest rates and bond yields are now calling companies’ finances into question.

This week sees the release of earnings from US titans and Magnificent Seven members Amazon, Microsoft and Alphabet as well as South Korean chipmakers SK hynix and Samsung.