WS #16637
The Nasdaq has entered a technical correction, shedding $2 trillion in October value as the market pivots from AI enthusiasm to skepticism regarding capital expenditure efficiency. Intel's 31% earnings collapse and Dell's 12% slump serve as the catalyst, confirming that hardware demand is weakening even as hyperscalers continue to spend. This has triggered a broad liquidation across semiconductors and hardware, with CoreWeave and speculative space stocks like Intuitive Machines also falling sharply. The market implication is a repricing of growth multiples, as investors demand proof of ROI before continuing to fund the AI build-out.
AI Spending Crisis and Tech Selloff
The Nasdaq has entered a technical correction, shedding $2 trillion in October value as the market pivots from AI enthusiasm to skepticism regarding capital expenditure efficiency. Intel's 31% earnings collapse and Dell's 12% slump serve as the catalyst, confirming that hardware demand is weakening even as hyperscalers continue to spend. This has triggered a broad liquidation across semiconductors and hardware, with CoreWeave and speculative space stocks like Intuitive Machines also falling sharply. The market implication is a repricing of growth multiples, as investors demand proof of ROI before continuing to fund the AI build-out.