AI companies flew too close to the sun: tech sector stock selloff sees Intel take the biggest hit

Shares in technology and AI related companies fell after several firms reported weaker earnings and concerns that AI may be hurting some existing revenue streams. Intel suffered the largest loss, dropping more than 30 per cent, while the selloff has raised questions about whether investors’ expectations for the AI boom have run ahead of business results.

The article says the Nasdaq-100 has fallen 10 per cent since 6 October. Alphabet lost 12.49 per cent over five days, Nvidia fell about 10 per cent before recovering some ground, and AMD dropped 10 per cent in one day; memory chip makers Micron and SK Hynix also declined. It describes similar weakness among AI-focused firms in China, while presenting claims of market manipulation and circular financing as speculation rather than established explanations.