Tech stocks slide as investors question AI spending
The tech-heavy Nasdaq Composite fell 1.4% on June 23, erasing some $680 billion in market value, as investors grew wary of the scale of spending on AI infrastructure. Chipmakers led the decline — Micron dropped 9%, AMD 5.7%, Nvidia 2.8%, and Intel 2.4% — and six of the seven “Magnificent Seven” stocks came under pressure.
Newly public SpaceX has been a focal point: its shares fell 16% the previous session before recovering 2.4%, dipping below their $150 debut price while remaining above the $135 IPO level, a swing of roughly $600 billion in market value. The company has pointed to new revenue, including a reported $150 million-a-month deal with Reflection AI and an earlier $920 million-a-month arrangement with Google.
The sell-off reflects a shift in how markets are weighing the AI build-out: the question is less whether demand exists than whether current capital spending will earn an adequate return. As one analyst put it, “nobody can say with any real confidence” yet whether the pullback is a blip or the start of a broader repricing.