Gathering AI storm clouds send tech stocks toward darkest day in a year
QQQ•Big tech stocks fell for a second day, with the Nasdaq 100 down 5.9% and facing more than $2 trillion in potential market-value declines. Investors worried that political and financing pressures could delay data-center construction and undermine AI-related spending.
1. Tech stocks slide
Semiconductor and AI infrastructure shares led Thursday’s selloff, as investors weighed concerns about data-center delays and the return on large AI investments. The Philadelphia Semiconductor index fell as much as 11.2%, its lowest level in more than six months; Nvidia dropped 9% and AMD fell 15%.
2. Infrastructure concerns
CoreWeave fell 12%, while Nebius dropped 15%; both companies’ shares have fallen by half or more since the Nasdaq Composite’s October 6 record. Around 30% of expected US data-center capacity additions in 2028 could be at risk from potential construction pauses, UBS analysts estimated.
3. Broader market weakness
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%. The Nasdaq Composite was on track to enter correction territory, a 10% decline from its recent peak.
