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Tue, 23 Jun 2026

Tue, 23 Jun 2026 Tech stocks tumble on concerns over AI spending

A sudden wave of selling in major tech shares triggers doubt over the sustainability of the AI boom.
Financial markets experienced a sharp decline on Tuesday, with major tech shares plummeting and sparking concerns over the sustainability of the AI boom. The Nasdaq index fell 3% by close of trade, while chipmakers Nvidia and Intel were hit particularly hard. The downturn also affected newly public companies like SpaceX, which saw its share price drop below $150 before recovering to $156. The sell-off has left investors questioning whether high-tech stocks have become overvalued, with some analysts attributing the decline to a combination of factors including sticky inflation and cooling corporate IT budgets. Others are optimistic that the downturn is a temporary pause rather than a sign of a larger retreat for tech investments. Market sentiment has shifted from pure optimism to caution, with stock prices looking inflated after a 90-day rally. The AI boom, which had driven market valuations to unprecedented highs, has raised doubts about whether actual corporate adoption can justify such expensive price tags. As the trading week continues, Wall Street will be closely watching upcoming corporate earnings to gauge whether tech giants are generating real profits from their massive AI investments or just marketing buzz.