Tech Stocks Wipe Out Over $700 Billion As Traders Flee AI Hype

Benzinga

Tech stocks plunged as doubts over Fed rate cuts and worsening energy constraints wiped out more than $700 billion in market value. Nvidia, Tesla, Alphabet, Amazon, and Microsoft led the decline, while analysts warned that power shortages could slow AI expansion.

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

00:02Tech stocks fell sharply Thursday as skepticism over Fed rate cuts and worsening energy constraints

00:07in the AI sector erased more than $700 billion in market value, according to Benzinga.

00:13The Nasdaq 100 dropped 2.2 percent, its steepest decline since October 10.

00:19NVIDIA led the sell-off, falling 4.3 percent and losing $200 billion in market cap,

00:25while Tesla, Alphabet, Amazon, and Microsoft each shed tens of billions.

00:30Broadcom fell 7 percent and lost $90 billion in market value,

00:34while Amazon and Microsoft each shed about $70 billion.

00:38Fed officials warned that inflation remains elevated and signaled a high bar for easing,

00:43pushing market odds of a June rate cut down to 51 percent.

00:47The AI sector was hit especially hard after Corweave warned of a fourth-quarter miss tied to data center delays,

00:53and analysts pointed to power shortages that could slow AI expansion.

00:57Market watchers said the AI boom now hinges on grid capacity and infrastructure,

01:02noting rising electricity demand and higher utility costs nationwide.

01:06For all things money, visit Benzinga.com.

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