$1 Trillion Wiped From AI Stocks as JPMorgan Sees No Quick Recovery

Over $1 trillion has been wiped from the value of 20 major AI and semiconductor stocks since the start of the week, with investors hesitant to buy the dip this time, according to JPMorgan. The selloff has spread from Asia to Europe and Wall Street, driven by rising borrowing costs that threaten to make financing massive AI infrastructure investments more expensive. JPMorgan warns this correction differs from July's, as buyers are less willing and share buybacks have been reduced, with Nvidia, AMD, and Micron all declining. Rising US Treasury yields above 5% are pressuring funding, while concerns grow over Chinese competition and potential oversupply of memory chips by 2029. JPMorgan sees fewer support mechanisms this time, though analyst Dan Ives remains optimistic, arguing underlying AI demand stays strong.