US tech stocks post worst week in a year as AI spending doubts grow
US tech stocks just had one of their worst weeks in a year, as Wall Street finally questioned what it is getting for massive AI spending. Chip shares tumbled and investors began weighing the returns on the buildout.
US technology stocks closed out one of their worst weeks in a year. According to MarketWatch, Wall Street spent much of it confronting a question it had been too euphoric to ask: what exactly is it getting for all this AI spending?
Chip shares were under pressure for much of the week, dragging the major indexes lower. As investors questioned when the capital flowing into data centers and AI infrastructure would translate into profit, earlier euphoria gave way to caution.
Analysts point to stretched valuations. In the coming weeks, concrete evidence of how AI investment feeds through to company revenue and earnings will be decisive for the market's direction.
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