Global Tech Sell-off Wipes $1 Trillion From AI and Semiconductor Stocks
· Business · CNBC
Global technology stocks, including major players like Nvidia, AMD, and Dell, faced a significant sell-off on Thursday as investor sentiment soured over the high costs of artificial intelligence infrastructure. Collectively, 20 of the world's most valuable semiconductor and AI companies have lost over $1 trillion in market value this week. The downturn extended across international markets, with South Korea's SK Hynix and Samsung Electronics, Japan's SoftBank and Advantest, and European firms like ASML and Infineon recording sharp declines. Investors are increasingly concerned that rising interest rates will make the massive capital expenditure required for AI development unsustainable. Nvidia CEO Jensen Huang attempted to calm market fears by stating that the cost of capital for neocloud provider CoreWeave is actually decreasing.
Why it matters
The massive valuation drop signals growing market skepticism toward the long-term profitability of the AI infrastructure boom. This volatility directly impacts global equity markets and could tighten funding conditions for technology startups and chip manufacturers.
Read the original report — CNBC
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.