The NASDAQ composite index ended Tuesday down 2.2 percent, a dive driven by falling tech stocks. AI and chip stocks spearheaded the decline, with key companies like Tesla (TSLA), and Nvidia (NVDA) down 5.82 and 3.91 percent respectively over the past five days.
One key driver of the decline was fear ahead of earnings reports from Micron Technology, a key chipmaker, after market close on Wednesday. Micron fell 13 percent on the day, alongside the South Korean chipmakers Samsung Electronics and SK Hynix, which fell 12 percent over the same period.
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These declines come as major AI companies, OpenAI and Anthropic, plan to offer shares on the public markets, raising questions about their long-term profitability.
Corporate Investment in artificial intelligence this year has reached a high of $580 billion according to Stanford University’s 2026 AI Index report, with over $1 trillion cumulatively in the past four years. Costs of AI processing and production rising still higher than revenues has fueled speculation about an AI bubble and worries about the Federal Reserve rate hikes.
