US technology stocks extended a sharp sell-off on Tuesday, with the tech-heavy Nasdaq opening at its lowest level in more than two months as investor anxiety mounts over the scale of artificial intelligence spending, which is approaching $1 trillion. Intel shares continued their steep decline, deepening losses that have made the chipmaker one of the sector's weakest performers amid concerns over its turnaround strategy and competitive position. The broader retreat reflects growing unease that the massive capital outlays earmarked for AI infrastructure may take longer to translate into returns, prompting investors to reassess valuations across semiconductor and software companies that had rallied strongly on AI optimism.
Market analysts said the pullback signals a recalibration rather than a wholesale rejection of the AI trade, with investors increasingly demanding evidence of monetisation to justify elevated spending. The combined commitments of major hyperscalers and chipmakers toward data centres, processors and energy capacity now approach the trillion-dollar threshold, a figure that has intensified scrutiny of profit timelines. Intel's continued weakness has compounded sector-wide pressure, highlighting investor scepticism about its ability to regain manufacturing leadership. Trading remained volatile through the morning session, and strategists cautioned that further declines could follow if upcoming earnings reports fail to reassure markets that AI investments are yielding measurable revenue growth.
Independent reporting synthesized from primary wires and global correspondents.