WS #16625
The Nasdaq 100 suffered a sharp 3.6% decline, hitting near three-month lows as investor sentiment toward the AI trade deteriorated. Amazon's announcement of aggressive new AI capital expenditures, coupled with Intel's disappointing Xeon outlook, has sparked fears that the ROI timeline for AI infrastructure is stretching too far into the future. This selloff represents a rotation away from high-multiple growth stocks as macro headwinds from energy and rates intensify.
Tech Selloff & AI ROI Doubts
The Nasdaq 100 suffered a sharp 3.6% decline, hitting near three-month lows as investor sentiment toward the AI trade deteriorated. Amazon's announcement of aggressive new AI capital expenditures, coupled with Intel's disappointing Xeon outlook, has sparked fears that the ROI timeline for AI infrastructure is stretching too far into the future. This selloff represents a rotation away from high-multiple growth stocks as macro headwinds from energy and rates intensify.