Global technology stocks have faced a sharp sell-off as investors grow increasingly concerned about the rising cost of artificial intelligence (AI) development and whether massive investments will generate sufficient returns.
The Nasdaq Composite fell 5.5% on Thursday, November 5, while the S&P 500 dropped 4.4%. The technology-heavy market decline wiped out trillions of dollars in market value, with major chipmakers and AI-related companies among those affected.
Data Centre Expansion Under Pressure
Investors are increasingly questioning the huge spending on AI data centres, advanced chips and computing infrastructure. Concerns have also grown that tighter scrutiny of data-centre projects in the United States could slow future expansion.
Companies such as Nvidia and AMD faced significant selling pressure as uncertainty spread across the technology sector.
AI Industry Faces Investor Scrutiny
Despite the market decline, demand for AI technology remains strong. However, investors are now paying closer attention to companies' borrowing, infrastructure costs and ability to turn AI investments into profits.
The recent sell-off highlights growing uncertainty over the future pace of the global AI boom.
Published: Saturday, 7 November 2026 | 12:17 PM IST