Technology shares led a steep global retreat as investors cooled on the AI chip trade, erasing gains that had concentrated in semiconductor and AI-adjacent names. The shift reflects mounting caution over how quickly artificial intelligence demand will translate into sustainable earnings, after a powerful run-up tied to chips and computing infrastructure.
Semiconductor makers and companies seen as key beneficiaries of AI spending came under pressure as traders rotated out of high-multiple growth exposures. Market participants pointed to profit-taking and a reset in expectations as enthusiasm for the theme tempered, leaving the most crowded trades vulnerable to sharper swings.
The risk-off tone spread across major regions ahead of the U.S. session, underscoring how dependent recent market leadership had become on AI-related momentum. With sentiment fragile, broad benchmarks tracked lower as investors reassessed valuations and the durability of AI-driven gains.
Separately, the briefing noted that the Airbnb CEO was targeted by hackers in what was described as an AI slop attack, highlighting ongoing cybersecurity risks linked to emerging AI tools.
