WS #16385
The technology sector is facing renewed selling pressure, with major names like Alphabet (GOOG) and Broadcom (AVGO) down over 4% in premarket trading. This decline coincides with a broader 'AI rout' sentiment, suggesting investors are rotating out of high-multiple growth stocks in favor of defensive assets or commodities. The selloff is broad-based, affecting both software and hardware plays, and indicates a shift in risk appetite away from speculative tech growth. Infosys shares plummeted 7% in premarket trading after the company reported a profit miss for the second quarter and slashed its full-year constant currency growth guidance to 1-2%, down from 1.5-3%. While AI revenue grew significantly, the broader guidance cut signals potential softness in global enterprise IT spending. This development adds to the bearish narrative for the global IT services sector and suggests that the AI boom has not yet fully translated into broad-based revenue growth for legacy providers.
Tech Sector Selloff
The technology sector is facing renewed selling pressure, with major names like Alphabet (GOOG) and Broadcom (AVGO) down over 4% in premarket trading. This decline coincides with a broader 'AI rout' sentiment, suggesting investors are rotating out of high-multiple growth stocks in favor of defensive assets or commodities. The selloff is broad-based, affecting both software and hardware plays, and indicates a shift in risk appetite away from speculative tech growth.
Infosys shares plummeted 7% in premarket trading after the company reported a profit miss for the second quarter and slashed its full-year constant currency growth guidance to 1-2%, down from 1.5-3%. While AI revenue grew significantly, the broader guidance cut signals potential softness in global enterprise IT spending. This development adds to the bearish narrative for the global IT services sector and suggests that the AI boom has not yet fully translated into broad-based revenue growth for legacy providers.