AI storm dooms tech stocks to $2 trillion decline on darkest day since 2025
QQQ•Big tech stocks slumped Thursday, with the Nasdaq 100 on track for market-value losses exceeding $2 trillion as investors worried about AI infrastructure spending and financing. The Philadelphia SE Semiconductor index fell as much as 11.2%, while Nvidia dropped 9% and AMD fell 15%.
1. Tech selloff deepens
Big tech stocks fell sharply for a second straight day, with the Nasdaq 100 last down 5.9% and the Nasdaq Composite nearing correction territory, defined as a 10% decline from its recent peak. The Philadelphia SE Semiconductor index fell as much as 11.2% to its lowest level in more than six months; Nvidia dropped 9% and AMD slumped 15%.
2. AI spending under pressure
Investors were concerned that political changes could slow AI infrastructure expansion and that tighter financial conditions could constrain smaller infrastructure companies. Around 30% of expected U.S. data center capacity additions in 2028 could be at risk from potential construction pauses, UBS analysts estimated. CoreWeave fell 10%, Nebius dropped 15%, and both companies’ shares have fallen by half or more since the Nasdaq Composite reached a record on October 6.
3. Broader declines
Amazon fell 2.5%, Alphabet slid 2%, and Microsoft declined 2%. Data-center operators Applied Digital, Cipher Digital and IREN each tumbled more than 14%; GE Vernova fell about 6% and Constellation Energy slipped 3%. Analysts said data-center permitting, power-grid and water-system constraints could impede construction.
