Nasdaq's AI capital crunch triggers selloff, but dividend stocks shine

The Nasdaq fell 2.5% on Thursday, led by chip and AI infrastructure stocks, as investors grew concerned about a scarcity of capital to fund the AI buildout. The selloff marks a sharp downturn driven by warnings from industry leaders. Broadcom CEO Hock Tan warned last Monday that a capital crunch could become AI's next bottleneck, followed by CoreWeave bond selloffs. Meta Platforms reported negative free cash flow for the first time since its 2012 IPO, citing a need to raise "hundreds of billions of dollars" starting as early as fall 2026, while Nvidia CEO Jensen Huang acknowledged capital demand exceeds availability. Bond yields dipped below 5% for the first time since Sept. 23, boosting high-dividend stocks like Kimberly-Clark and Home Depot, leaving the Dow nearly flat. Upcoming earnings from Western Digital and Bloom Energy will offer further insight into AI demand and power infrastructure investment.