# Tech-stock rout accelerates retreat from the AI trade

- URL: https://talkfuse.com/story/tech-stock-rout-accelerates-retreat-from-the-ai-trade/
- Published: 2026-11-05T16:40:37+00:00
- Updated: 2026-11-05T18:07:09+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/tech-stock-rout-accelerates-retreat-ai-trade-6528446
- Topics: AI, Business, Markets, Technology, World

## Key points

- Chip shares plunged as investors retreated from the AI trade.
- The semiconductor index briefly fell 11 per cent.
- Data-centre funding and political hurdles add to uncertainty.

## Summary

Technology shares fell sharply on Thursday as investors pulled back from AI-related stocks, raising questions about whether heavy spending on the sector can deliver lasting returns. The sell-off also reflects tighter financing for data-centre construction and political measures that could constrain new projects.

The semiconductor index dropped as much as 11 per cent, its steepest fall since March 2020, while the Nasdaq fell as much as 5 per cent, potentially confirming a correction from its October high. More than a dozen major technology companies, including AMD, Sandisk, Micron, Dell and Marvell, fell by double-digit percentages; one investment executive said the semiconductor index was about 31 per cent below its 52-week high. Market strategists said investors were reassessing AI investment prospects and shifting away from chipmakers, while the effects of recent US election results remain uncertain.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.