AI stocks fall worldwide as inflation and rate worries shake markets

AI stocks are falling sharply on Wall Street and globally as inflation worries and higher interest rates fuel concerns that the artificial-intelligence boom may be fading. The Nasdaq composite dropped 1.2 per cent early Thursday, while the S&P 500 fell 0.5 per cent. Nvidia fell 3.2 per cent and Advanced Micro Devices lost 5.4 per cent, with other tech firms like CoreWeave and Oracle also declining. A report showing wholesale inflation jumped more than expected, driven by energy costs, has raised the possibility of another Federal Reserve rate hike, pressuring high-growth sectors. Asian markets were hit hardest, with South Korea’s Kospi sinking 7.6 per cent and Japan’s Nikkei tumbling 4.9 per cent. Despite the sell-off, Taiwan’s TSMC reported record quarterly profit, citing strong AI demand, though analysts warn of a potential mismatch between market expectations and actual tech sector growth.