Nasdaq Composite Morning Wrap 5-11-2026 Chip Stocks Fall, AI Concerns Rise, What's Next?
Investors are questioning whether hyperscalers can justify $807 billion in capital spending this year, while semiconductor shares and data center builders slide.
- On Thursday, Micron tumbled 17%, Vernova dropped 7%, and Sandisk plunged 22% as AI stocks faced a steep sell-off driven by concerns over chip cost spikes and infrastructure sustainability.
- Mounting concerns over US$807 billion in anticipated capital spending this year have put AI economics under scrutiny, as hyperscalers race to build data centers.
- Alphabet shares plunged 13% on October 29 after reporting negative free cash flow, revealing that "AI mode" searches were eating into advertising sales.
- Jim Cramer, CNBC host, described the sell-off as an "orderly decline" unlike 2000, but warned smaller developers like CoreWeave, Iren, and Nebius face risks from borrowing for projects facing regulatory delays.
- Anthropic plans to spend US$895 billion on computing power, though market volatility complicates its stock debut this month; Cramer cited falling interest rates and a possible end to the Iran war as reasons for optimism.
16 Articles
16 Articles
The European exchanges were red on Friday, hit by the wave of declines on the American and Asian markets, covered by a real "AI panic" after years of growing enthusiasm for artificial intelligence, the main engine of the market "bull" after 2022. Actions in the technology sector in the USA and Asia fell ...
The Paris Stock Exchange (CAC 40) falls sharply this Friday, November 6, following Wall Street and Asian markets. The victory of the Democrats in the United States revives fears of a slowdown in the development of artificial intelligence.
Macroscope | The AI sell-off is a taste of things to come
There are good reasons for investors to be bullish about artificial intelligence (AI). The earnings of technology firms in the S&P 500 are expected to increase 54 per cent this year. For the index as a whole, profits will rise 33 per cent, turbocharged by the tech and energy sectors, data from FactSet shows. In Asia, the impact of the AI boom is even more profound. Corporate earnings in South Korea and Taiwan, the two leading semiconductor hubs,…
The broad victory of the Democrats in the mid-term elections in the U.S. helped to unleash the latest wave of sales in AI-related actions
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