Tech Stocks Slide as AI Hype Faces Investor Scrutiny

Tech equities extended losses for a second consecutive session as market participants reevaluated artificial intelligence growth narratives. Semiconductor leaders Nvidia and Meta edged lower while Amazon, Tesla, and Alphabet declined over 1%, mirroring broad-based sector weakness.

Market skepticism intensified following an MIT Project NANDA study revealing 95% of enterprises show no measurable ROI from AI implementations. OpenAI CEO Sam Altman's 'bubble' remarks further dampened sentiment, acknowledging potential overexuberance despite the technology's foundational promise.

The pullback contrasts sharply with Q1's AI-driven rallies, when cloud giants attributed earnings beats to artificial intelligence adoption. Chipmakers AMD, Broadcom and Micron joined the retreat as liquidity rotated away from tech exposures.