Investors pull back from AI-linked tech giants amid slowing growth, high valuations, and rising interest rate concerns.
Ten leading technology stocks have fallen over 20% from recent highs, officially entering bear market territory as investor sentiment sours on artificial intelligence-driven growth. Concerns over slowing enterprise spending, rising interest rates, and unproven returns on AI investments have accelerated the selloff, despite many firms maintaining strong long-term fundamentals.
The declines follow years of premium valuations tied to AI hype, with some stocks losing more than half their market value. Companies like Coinbase and Netflix face additional pressure from cyclical revenue streams and heightened competition, while AI-focused firms struggle to justify massive capital expenditures.
The shift reflects broader market skepticism as investors demand tangible earnings growth and disciplined spending, rather than speculative bets on future potential.