Tech Stocks Rocked by Global Selloff & Meta CTO Andrew Bosworth talks new in-house glasses

**SPEAKER_1** (0:01)
AI is unchartered territory, and many leaders are trying to navigate through without a guide to help them. That's why Morning Brew created The Intelligence Shift, a new podcast with PWC. It's all about how AI is fundamentally changing different industries. Host Dan Priest is joined by a top tier roster of industry leaders who share real stories and real lessons learned. Get guidance from industry experts. Listen to The Intelligence Shift wherever you get your podcasts.

**Neal Freyman** (0:29)
Good Morning Brew Daily show. I'm Neal Freyman.

**Toby Howell** (0:32)
I'm Toby Howell.

**Neal Freyman** (0:33)
Today, New York's primaries last night showed AI money is going to be a force in the upcoming midterms.

**Toby Howell** (0:39)
Then the market sort of threw up on itself yesterday as AI stocks hit the fritz. It's Wednesday, June 24th. Let's ride.

**Neal Freyman** (0:57)
Good morning, you might be wondering, hey, why is this episode so long today?
And it's not because Toby went on an extended rant about a new running shoe. We're trying something new, tacking on an interview to the end of the episode. Yesterday, as you'll hear in a bit, Meta released its latest smart glasses, and we had the opportunity to chat with the person spearheading the project, Meta CTO, Andrew Bosworth. Bos has been Mark Zuckerberg's right-hand man for 20 years. So he had some very interesting things to say about this glasses push, as well as the broader cultural problems facing the company right now.

**Toby Howell** (1:30)
We talked about the glasses and what it was like working alongside Kylie Jenner to design a pair. Apparently, she was very hands-on, but we also spoke about morale at Meta, which has not been high recently due to layoffs and AI fears and reorgs. We hope you enjoy this venti-sized episode of MBD today.

**Neal Freyman** (1:49)
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**Toby Howell** (1:58)
Yeah, how'd you know?

**Neal Freyman** (2:00)
Because you've been complaining about it for weeks.

**Toby Howell** (2:02)
Oh, my bad.

**Neal Freyman** (2:03)
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**Toby Howell** (2:15)
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**Neal Freyman** (2:23)
To put AI to work for people, visit servicenow.com. That's servicenow.com.

**Toby Howell** (2:29)
Well, the market is making the sound a balloon does when you let air leak out of it, a sort of...
As a tech sell-off gripped global markets yesterday, causing some of the biggest AI names to slide. It started before even the MBD crew gets up in the morning as traders in America woke up to the South Korean KOSPI index going haywire. The KOSPI plunged more than 10% in minutes, leading to a trading halt as two of its biggest companies and key AI memory suppliers, Samsung and SK Hynex both fell more than 12%. Then like Squid Games and K-pop Demon Hunters, South Korean influence spilled over into America as the NASDAQ opened the day down more than 2%. While stocks in the US clawed back some of their losses throughout the day, AI memory and chip makers like Micron, AMD, Intel and Marvel fell between 6 and 13%.
It's clear investors are taking a minute to re-evaluate how much AI optimism is already priced in. There continues to be jitters around how much tech giants like Google and SpaceX are spending on AI, plus the potential of a Fed rate hike looms in the near future. By the end of yesterday, the tech-focused NASDAQ 100 finished down about 3.3%, which certainly dinged portfolios and led to questions on if the AI-induced rally has stalled out.

**Neal Freyman** (3:46)
Have you ever heard what a balloon letting out air sounds like?

**Toby Howell** (3:49)
I could have finished with like a brrrrr, but I didn't do that.

**Neal Freyman** (3:52)
And we're all grateful you did. Now, the way I look at this is the stock market is the Baltimore Ravens and AI companies are Lamar Jackson, their star quarterback. When Jackson is healthy, the team thrives and he's playing well. When he's injured, they look awful. And that's because this market is so concentrated in AI names. Around half of the S&P 500 overall market value, $67 trillion, is captured in just 41 stocks tied to the AI boom. That's according to Bianco Research. And the 10 largest stocks in the Vanguard US total market index ETF. So this is pretty much every stock on the market, 3,500 names represent 35% of its value. Top 10 largest stocks of 3,500 represent 35% of its value. So the way AI goes is the way the market goes. And we're just seeing a lot of volatility recently.