Tech and AI stock sell-off hits US and Asian markets
5 verified8 unconfirmed
A wave of selling in technology and artificial intelligence stocks swept global markets on Tuesday, raising renewed doubts about whether massive corporate spending on AI will generate sustainable returns. The tech-heavy Nasdaq index closed more than 2% lower, while major Asian markets also suffered sharp declines, particularly in South Korea where semiconductor stocks tumbled. The sell-off followed steep drops on Monday for Google-parent Alphabet and SpaceX, with both companies losing significant value. Investors are questioning whether the AI investment boom amounts to a bubble, especially after years of escalating spending on infrastructure and hardware. The downturn spread from Wall Street to Asia, hitting chipmakers such as Samsung and SK Hynix. Analysts say the market is struggling to balance optimism about AI’s potential with fears that returns may not justify the massive costs.
What’s verified
The Nasdaq index closed over 2% lower on Tuesday.
Alphabet’s stock fell 5% on Monday.
SpaceX shares dropped 16% on Monday.
Samsung and SK Hynix each fell about 12% in South Korea.
The sell-off reflects investor concerns about whether massive AI spending will generate sufficient returns.
Not yet confirmed
Whether the Federal Reserve will increase interest rates, as a signal last week was mentioned in only one report.
The extent of Micron Technology’s decline, with one report stating its shares fell over 13% amid earnings anxiety.
Whether Nvidia shares have fallen, as only one report noted a second day of declines.
The exact percentage drop of South Korea’s benchmark index, with one report saying it closed 10% lower.
Japan’s Nikkei 225 decline of 3.5%, reported by a single source.
The total AI investment figures from Stanford University, including over $1 trillion in four years and $580 billion in the last year, from one report.
SpaceX’s reported $20 billion bond sale and its June 12 IPO date, each mentioned in only one report.
The potential IPOs of OpenAI and Anthropic, discussed in one report.
Key figures
Alphabet, SpaceX, Samsung, SK Hynix, Nasdaq
Sources: The Guardian, NPR
