Shares in technology companies dropped sharply Thursday, compounding recent declines and sparking concerns about the durability of an artificial intelligence boom that has driven much of recent U.S. economic growth.
\n\nThe tech-focused Nasdaq 100 index dropped more than 6% in midmorning trading, to its lowest level in five months.
\n\nThe S&P 500 also fell 3.5%, putting it on track for its worst day since April 2025, when President Donald Trump’s global tariffs rocked markets. The S&P 500’s drop erased nearly $2.5 trillion in wealth from the index.
\n\nMemory and chip firms SanDisk, Western Digital, AMD, Seagate and Micron were the index’s biggest losers, all plunging around 10%.
\n\nThe broader Nasdaq Composite, which tracks more than just tech stocks, also entered “correction” territory on Thursday, which is when a stock or index declines at least 10%.
\n\nTech stocks have surged in recent years as excitement about artificial intelligence has fueled billions of dollars in investments in, and by, the companies that make chips and infrastructure necessary for its development and operation.
\n\nSince Election Day 2024, the Nasdaq has surged almost 40%.
\n\nBut questions about whether AI will enable the kind of productivity necessary to generate returns on those investments have grown…
Original source: https://www.nbcnews.com/business