Tech stocks tumbled again on Wednesday as mounting fears of an artificial intelligence bubble fueled a sell-off across some of the market’s biggest names. The retreat marked the second straight day of declines for the sector, which has powered much of the stock market’s gains this year.
Investors shifted away from high-flying technology shares amid concerns that valuations tied to the AI boom may not be sustainable. Companies that have benefited most from AI enthusiasm—particularly chipmakers—were hit hardest. Micron led the slide, plunging about 4%. Broadcom fell more than 1%, while Advanced Micro Devices slipped less than 1% after clawing back from steeper losses earlier in the session.
Nvidia, viewed as the bellwether for AI momentum, pared back early weakness to close down only slightly after dropping more than 3% on Tuesday. The company has been one of the biggest beneficiaries of demand for AI chips, but now finds itself at the center of speculation over whether growth can keep pace with investor expectations.
The selling also extended to Big Tech. Amazon and Apple each fell nearly 2%, while Alphabet dropped about 1%. Meta and Microsoft posted smaller declines. The downturn comes as traders rotate into sectors perceived as safer bets, a sign that some are questioning whether AI-driven optimism has run too far, too fast.
Market watchers note that while AI continues to reshape industries and generate revenue opportunities, stock prices may have gotten ahead of fundamentals. Similar bursts of enthusiasm in past decades—such as the dot-com bubble—serve as cautionary reminders of how quickly sentiment can reverse.
Source: Yahoo News