WS #16995
The Nasdaq has plunged 5.5%, entering a technical correction as investors question the sustainability of massive AI capital expenditures. The selloff is global, impacting Asian and European markets, with NVIDIA losing key support levels and AMD facing pressure despite its own upgraded guidance. The market is rotating out of high-multiple growth stocks into value, signaling a fundamental shift in the AI narrative from 'growth at any cost' to 'profitability and ROI scrutiny'.
AI Selloff and Tech Re-rating
The Nasdaq has plunged 5.5%, entering a technical correction as investors question the sustainability of massive AI capital expenditures. The selloff is global, impacting Asian and European markets, with NVIDIA losing key support levels and AMD facing pressure despite its own upgraded guidance. The market is rotating out of high-multiple growth stocks into value, signaling a fundamental shift in the AI narrative from 'growth at any cost' to 'profitability and ROI scrutiny'.