WS #16634
The technology sector is undergoing a violent repricing after Intel dropped 31% and Alphabet fell 10% on disappointing earnings and guidance. This has cascaded into a broad semiconductor sell-off, with Qualcomm down 12% and AMD down 13%, reflecting fears that AI capital expenditure is outpacing near-term monetization. The Nasdaq 100 fell over 3%, and the narrative is shifting from 'AI euphoria' to 'AI reality check', with analysts questioning the sustainability of current valuations in the face of margin compression.
Tech Selloff and AI Sentiment Shift
The technology sector is undergoing a violent repricing after Intel dropped 31% and Alphabet fell 10% on disappointing earnings and guidance. This has cascaded into a broad semiconductor sell-off, with Qualcomm down 12% and AMD down 13%, reflecting fears that AI capital expenditure is outpacing near-term monetization. The Nasdaq 100 fell over 3%, and the narrative is shifting from 'AI euphoria' to 'AI reality check', with analysts questioning the sustainability of current valuations in the face of margin compression.