đ A massive sell-off of tech stocks is hitting the U.S. stock market.
Investors are concerned about the enormous sums tech giants are spending on AI, questioning whether these investments will ever pay off.
The Nasdaq index is down 2.6%, the S&P 500 has lost 1.5%, and the Dow Jones is off by 0.7%.
⤠Intel shares plummeted nearly 30% following a weak forecast for the fourth quarter.
⤠Amazon and Alphabet came under pressure after their earnings reports, which fueled concerns regarding AI-related spending and a decline in free cash flow.
The extent of the decline for individual stocks from their highs:
⢠Intel: -54%
⢠Amazon: -21%
⢠Alphabet: -31%
⢠Oracle: -51%
⢠Coinbase: -62%
⢠CoreWeave: -60%
⢠Arm Holdings: -55%
⢠Western Digital: -54%
⢠SanDisk: -49%
⢠Circle: -48%
⢠ServiceNow: -44%
⢠Robinhood: -44%
⢠Seagate: -42%
⢠Marvell Technology: -39%
⢠Super Micro Computer: -39%
⢠Broadcom: -34%
⢠AppLovin: -68%
⢠Adobe: -29%
⢠Micron: -29%
⢠IBM: -23%
⢠Meta: -21%
Investors also fear that major tech companies might cut back on AI spending by 2027, which would deal a blow to chipmakers, including Nvidia.
âď¸ď¸According to preliminary estimates, the Nasdaq has lost nearly $5 trillion in market capitalization since October 6.
Investors are concerned about the enormous sums tech giants are spending on AI, questioning whether these investments will ever pay off.
The Nasdaq index is down 2.6%, the S&P 500 has lost 1.5%, and the Dow Jones is off by 0.7%.
⤠Intel shares plummeted nearly 30% following a weak forecast for the fourth quarter.
⤠Amazon and Alphabet came under pressure after their earnings reports, which fueled concerns regarding AI-related spending and a decline in free cash flow.
The extent of the decline for individual stocks from their highs:
⢠Intel: -54%
⢠Amazon: -21%
⢠Alphabet: -31%
⢠Oracle: -51%
⢠Coinbase: -62%
⢠CoreWeave: -60%
⢠Arm Holdings: -55%
⢠Western Digital: -54%
⢠SanDisk: -49%
⢠Circle: -48%
⢠ServiceNow: -44%
⢠Robinhood: -44%
⢠Seagate: -42%
⢠Marvell Technology: -39%
⢠Super Micro Computer: -39%
⢠Broadcom: -34%
⢠AppLovin: -68%
⢠Adobe: -29%
⢠Micron: -29%
⢠IBM: -23%
⢠Meta: -21%
Investors also fear that major tech companies might cut back on AI spending by 2027, which would deal a blow to chipmakers, including Nvidia.
âď¸ď¸According to preliminary estimates, the Nasdaq has lost nearly $5 trillion in market capitalization since October 6.
