Tech Giants Decline for Third Day: AI Stocks Under Pressure on Nasdaq
The technology-heavy Nasdaq index has declined for the third consecutive day due to intense selling pressure on artificial intelligence stocks. The performance of high-value technology companies is causing concern across broader markets, with analysts warning investors that the correction may deepen.
AI Stocks Shaken by Selling Pressure on Nasdaq
The Nasdaq Composite Index, a key benchmark for global technology exchanges, closed lower for the third consecutive trading day, impacted by sharp sell-offs in the stocks of artificial intelligence (AI)-focused companies. Market observers note that profit-taking and valuation concerns are dominating AI-themed investments, which have delivered extraordinary returns in recent months. This corrective movement is prompting a re-evaluation not only of the stock market but also of expectations for the future of the technology sector.
High-Valuation Companies Trigger Market Concerns
Stocks of companies offering groundbreaking products and services in artificial intelligence or making significant investments in this field had shone brightly since last year. However, the wave of decline following this rapid rise indicates that investors are beginning to act cautiously in this segment, which they assess as 'overheated'. Shareholders across a broad spectrum—from chip manufacturers and cloud computing giants to software companies and specialized AI startups—are reviewing their positions.
Analysts point to several fundamental factors behind the decline. Foremost among these is the pressure created by central banks' prolonged high-interest rate policies on the valuation of future cash flows for growth-oriented technology companies. Additionally, uncertainties about whether the commercial returns of AI technologies will meet expectations and intense competition within the sector are negatively affecting investor psychology.
Warning from Market Analysts: Correction May Deepen
Recent commentary from financial institutions suggests that the current selling pressure may indicate a deeper correction period rather than just a short-term reaction. Some analysts argue that the AI bubble is beginning to deflate and that stock prices need to realign more closely with the companies' actual fundamental data. They advise investors to focus on companies with solid business models and sustainable growth strategies, rather than speculative momentum.
While the long-term potential of artificial intelligence remains widely acknowledged, experts emphasize that the current market volatility serves as a reminder of the risks associated with rapid valuation increases. The coming weeks are expected to be critical in determining whether this is a healthy market correction or the beginning of a more significant trend reversal for tech stocks.
