Tech Stocks Plunge as AI Spending Surges Toward $1 Trillion

US technology stocks suffered sharp falls on the day, with the tech-heavy Nasdaq opening at its lowest level in more than two months and shares in chipmaker Intel continuing their downward slide. The selloff unfolded as investors weighed the scale of the industry's artificial intelligence buildout, with AI-related spending approaching the $1 trillion mark.

Intel's persistent decline has added to pressure across the semiconductor sector, while the Nasdaq's drop to a two-month low underscores how sensitive markets have become to the cost side of the AI boom. The near-$1 trillion figure reflects the cumulative capital expenditure pledged by major technology companies on data centers, chips, and AI infrastructure, an outlay that has so far outpaced the revenue it has generated.

The moves point to growing investor scrutiny of whether the returns from AI investment will justify the sums being committed. Market watchers will be looking to upcoming earnings reports and capital expenditure guidance from major tech firms for signals on whether spending plans will be scaled back or sustained, with any pullback likely to ripple through semiconductor suppliers and the broader equity market.