Tech Stocks Sell Off Globally as AI Investment Bets Falter

A violent selloff of technology stocks is spreading across global markets, raising doubts about whether massive investments in artificial intelligence will deliver expected returns. The selloff began in the US and moved to Asia, hitting major tech companies and chip suppliers. Alphabet shares fell 13% on Thursday, erasing about $500 billion in market value, while Intel dropped 22% after issuing a weak revenue forecast. Japan's Nikkei index fell 2.4%, with SoftBank down 6% and now 48% below its June high. Nasdaq 100 futures fell 2% before the Wall Street open. The correction reflects investor concerns that current AI spending may not translate into sustainable profitability. Alphabet reported a second consecutive quarter of negative cash flow, and Intel faces doubts about its recovery. The selloff also hit Asian chipmakers including Samsung, SK Hynix, and TSMC, showing how the entire AI supply chain is affected. Investors are shifting toward safer assets, with the 10-year US Treasury yield falling to 4.92%.