AI Stocks Wipe Out Over $500B As Palantir Reminds Traders The Party Can't Last Forever

Benzinga

Wall Street lost more than $500B in market value as investors sold off high-flying AI stocks after months of steep gains. Palantir dropped 9% despite strong earnings, while Nvidia, Tesla, Alphabet, Amazon, Meta, and Microsoft also fell sharply. Analysts warned valuations are stretched, with the Shiller CAPE ratio at its highest since the dot-com bubble.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02Wall Street raised more than $500 billion in market value on Tuesday as investors dumped

00:06overbought tech stocks following months of AI fuel gains, according to Benzinga.

00:11Pounder-led losses with a 9% drop despite beating earnings forecasts and raising guidance,

00:16underscoring how stretched valuations have become after a 170% rally this year.

00:20Nvidia, Tesla, Alphabet, Amazon, Meta, and Microsoft also posted multi-billion dollar

00:25declines, triggering a 3.6% slide in the GlobalX Artificial Intelligence and Technology ETF.

00:32Analysts warn that the sell-off reflects extreme valuations, with the Shiller-Cape ratio hitting

00:3740.95, high since the dot-com era.

00:40Align Research's Phil Wohl said historical data show U.S. stocks at these levels tend to deliver

00:45weak long-term returns, urging investors to look in international markets for better value.

00:50For all things money, visit Benzinga.com.

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