The tech rout deepened, with shares in chip companies leading the slump despite supercharged earnings.
South Korean giant SK Hynix closed 9.61% down after reporting a record quarterly profit; rivals also saw slumps. This is a “correction to a little bit of the [AI] froth,” an analyst told CNBC, although it may also represent deeper fears.
Some investors are concerned that tech giants’ enormous AI spending is unsustainable: Alphabet’s shares slumped last week despite an 82% increase in cloud revenue as the market fretted about its $205 billion capital expenditure this year.
But not all tech companies have been hit: Apple, which has largely avoided the AI spending race, briefly became only the second-ever $5 trillion company on Tuesday.