Nasdaq drops 2% as AI sell-off hammers Micron, Nvidia and chip stocks
What's next: Investors are watching Micron earnings Wednesday for clues on whether the AI spending boom can still support rich valuations.
A broad sell-off in AI-linked technology shares pushed the Nasdaq down about 2% Tuesday, as investors questioned whether heavy spending on artificial intelligence will deliver enough returns to justify stretched valuations. Micron Technology led the decline, tumbling 12% ahead of earnings due Wednesday. Nvidia, Intel, Advanced Micro Devices and Alphabet also fell, while the weakness spread into Asia, hitting Samsung and SK Hynix. NPR reported corporate investment in AI topped $580 billion over the past year, on top of more than $1 trillion in the previous four years. SpaceX, which recently went public, also swung sharply and briefly fell below its $150 flotation price before recovering part of the loss.