Tech-stock rout deepens as AI trade unwinds

Technology stocks fell sharply on Thursday, with the semiconductor index dropping as much as 11% and the Nasdaq composite down 5%, marking the worst decline for the sector since June and confirming a correction from last month's record high. The selloff, which hit major firms like Advanced Micro, Micron, and Dell, was driven by concerns over AI spending returns and post-election policy shifts. Analysts cited weak earnings from Qualcomm and ARM Holdings, plus ballot initiatives limiting data-center construction, as key factors. The rout reflects a broader unwinding of the AI trade, with the semiconductor index down about 31% from its 52-week high. Experts noted political backlash against data centers and potential slowdowns in infrastructure buildout could further pressure the sector.