According to Al Jazeera, the Nasdaq Composite, heavily weighted with AI‑linked firms, dropped 2.6 % on Thursday – its steepest fall since a 4.2 % plunge on June 5 (S1). The broader S&P 500 also slipped 1.21 %, marking its biggest decline since July 29. All of the “Magnificent 7” tech giants suffered losses, with Meta tumbling nearly 7 % after raising its AI capital budget to $135‑$145 bn, while Amazon, Nvidia, Tesla, Alphabet and Microsoft each fell between 2.2 % and 4.6 % (S3). Even traditionally stable names like Intel and AMD were hit hard, sliding about 8 % and Broadcom down 4.3 % (S4). The Nasdaq now sits roughly 5.8 % below its all‑time high reached on October 6.
Analyst Jay Goldberg told Al Jazeera the sell‑off is driven more by sentiment than fundamentals, describing it as a “giant wall of worry” despite legitimate concerns about AI (S7). The debate over whether AI is forming a new bubble echoes the dot‑com crash, with some Wall Street voices warning that massive data‑centre and GPU spending may be unsustainable, while others see a transformative wave worth the cost (S8). Gartner projects global AI investment to hit $2.7 trillion in 2026 and $3.6 trillion in 2027 (S9).
How are you positioning your portfolio amid this volatility? Are you trimming exposure to the AI‑heavy names, or do you see a buying opportunity?