Tech Sector Sell-Off Deepens Amid AI Bubble Concerns
The tech sector is experiencing heightened volatility as investors retreat from AI-linked stocks, dragging down giants like Apple, Amazon, Alphabet, and Palantir. Advanced Micro Devices and Micron also faced declines, while CoreWeave—a pure AI play—plummeted over 20% in five sessions. This pullback follows months of record-breaking gains, now tempered by profit-taking and skepticism about AI's economic viability.
MIT researchers found minimal returns on AI investments for most companies, a sentiment echoed by OpenAI CEO Sam Altman, who warned of potential bubble conditions. Meta has paused hiring for its superintelligence division, signaling a broader recalibration after aggressive talent acquisitions, including a $14.3 billion stake in Scale AI.
