WS #16639
The technology sector is facing a severe repricing event, with the Nasdaq 100 dropping over 3% and Intel suffering its worst daily decline in history (-29%). The selloff is driven by a broader 'AI reckoning' where investors are questioning the return on massive data center capex, citing execution risks and power constraints at projects like Stargate. Mega-cap tech stocks are under pressure from both internal cost overruns and competitive threats, such as Microsoft's development of its own Maia AI chips to reduce reliance on Nvidia. This represents a significant shift from the previous 'buy the dip' narrative to active de-risking in the growth sector.
Tech Selloff and AI Reckoning
The technology sector is facing a severe repricing event, with the Nasdaq 100 dropping over 3% and Intel suffering its worst daily decline in history (-29%). The selloff is driven by a broader 'AI reckoning' where investors are questioning the return on massive data center capex, citing execution risks and power constraints at projects like Stargate. Mega-cap tech stocks are under pressure from both internal cost overruns and competitive threats, such as Microsoft's development of its own Maia AI chips to reduce reliance on Nvidia. This represents a significant shift from the previous 'buy the dip' narrative to active de-risking in the growth sector.