
AI‑Fueled Tech Stocks Hit Turbulence Amid Rising Sell‑Off Pressures
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Tech stocks tied to artificial intelligence took a sharp turn lower as worries about frothy valuations and earnings sustainability took hold. The latest plunge in the Nasdaq Composite adds to a pattern of steep drops: since the rise of generative‑AI – marked by the launch of ChatGPT in late 2022 – the index has recorded four separate sell‑offs of at least 8 %.
The wake‑up call came from investor concern that the AI growth story may be losing steam, particularly among high‑flying tech firms that had built much of their appeal on rosy expectations for AI‑driven expansion. Some analysts argue that the market’s recent enthusiasm may have outpaced fundamentals, raising questions over how those companies will deliver on lofty revenue and margin assumptions.
While the downturn has prompted caution among investors, others see the recent drop as a possible buying opportunity – especially if AI investment continues to accelerate and companies deliver on their promises. Either way, the mood has shifted: the era of “buy first, ask questions later” may be giving way to closer scrutiny of earnings, cash flow and long‑term sustainability in the world of AI‑fueled tech.
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