Tech-stock rout deepens as AI trade retreats from record highs

Technology stocks suffered their worst decline since June on Thursday, with the semiconductor index briefly falling 11% as the AI sector selloff accelerated. The Nasdaq composite dropped as much as 5%, approaching correction territory from its October record high. More than a dozen large tech companies, including Advanced Micro, Sandisk, Micron, Dell and Marvell Technology, saw double-digit percentage declines. Market analysts attributed the selloff to concerns over AI spending returns, post-election policy shifts limiting data center construction, and aggressive institutional de-leveraging. The decline follows a bruising month for AI stocks since the Nasdaq's record close on October 6, with the semiconductor index now down about 31% from its 52-week high. Analysts noted that Tuesday's elections brought ballot initiatives that could restrict data center building, adding to existing worries about high borrowing costs and falling free cash flow at major tech firms.