Global tech stocks tumble as investors question AI boom after US elections

Global tech stocks plunged after the US midterm elections, with the Nasdaq 100 losing about $2.5 trillion on Thursday and Asian markets falling Friday, as investors questioned the AI boom amid concerns over US spending and rising debt. The S&P 500 dropped 4.4 percent in its worst session since April 2025, with the sell-off also reaching London. Investors are now asking how long they can fund profits that have yet to materialize, with experts warning that lower share prices do not automatically make stocks cheap. Analysts highlight risks including competition driving down prices, reliance on future fundraising rounds, and data centre equipment replacement costs. Some advise focusing on measurable customer benefits and contract renewal dates, while noting that essential infrastructure can still leave investors with losses.