Big Tech Needs to Justify AI Spending as Investors Dump Stocks - Bloomberg
• Big Tech companies are facing mounting pressure from investors to justify massive AI expenditures following a significant selloff in technology stocks. • The Nasdaq 100 Index dropped 4.1% last week, while the S&P 500 fell 1.6%, driven largely by a 10% plunge in the Philadelphia Stock Exchange Semiconductor Index. • This downturn marks the worst weekly performance for chip stocks since April 2025, signaling growing skepticism among traders regarding AI's immediate returns.
bloomberg.com