Business · Markets · 2 hrs ago
Technology shares fall as investors question AI growth expectations
US technology shares had a difficult week as investors grew less certain that the AI boom would meet high expectations.
The S&P 500 fell 1.11% and the Nasdaq Composite dropped 1.88%, their biggest daily declines since July.
Companies supplying AI data centers also fell, including chipmaker Marvell, Oracle and Dell.
Persistent inflation and higher bond yields keep borrowing costs elevated, making it more expensive to expand data centers.
Chinese chipmaker CXMT's progress raised competition concerns for US and South Korean chip companies whose share prices already reflect expectations of strong results.
The pullback matters because AI-linked shares have helped drive markets to record highs, while other sectors face pressure from high bond yields.
Investors are weighing whether chipmakers and other AI companies can deliver the growth their prices anticipate.
Technology shares had a difficult week as investors questioned whether artificial intelligence growth would meet market expectations.
US stocks closed lower, with the S&P 500 down 1.11% and the Nasdaq Composite down 1.88%.
A semiconductor stocks index fell 4.3%, taking its weekly loss to about 12%.
Chipmakers and other AI infrastructure companies faced concerns about high financing costs and growing Chinese competition.
Marvell fell 8.7%, Oracle fell 8.8% and Dell lost 11.3%.
- Who
- Technology companies and investors.
- What
- Technology shares fell as investors questioned whether the AI boom would meet market expectations.
- When
- During the week covered in the article, published on October 17, 2026.
- Where
- US stock markets; the article also describes competition involving Chinese chipmaker CXMT and US and South Korean manufacturers.
- Why
- Persistent inflation and higher bond yields raised financing costs, while concerns about Chinese competition added pressure on chipmakers.
This story does not have two clearly opposing sides.
CoreWeave plunged 15.5% after comments by analysts and market observers raised concerns.
The semiconductor stocks index fell about 12% over the week as technology shares came under pressure.
- S&P 500
- Fell 1.11%
- Nasdaq Composite
- Fell 1.88%
- Semiconductor stocks index
- Fell 4.3%; about 12% lower over the week
- Marvell
- Fell 8.7%
- Oracle
- Fell 8.8%
- Dell
- Fell 11.3%
What people are saying
There is so much positive news already priced into chip stocks that they may be subject to sideways movements in the absence of new catalysts.
Trees do not grow to the sky. It is not possible to rise forever, indefinitely, assuming that nothing will go wrong.