Approximately $767 billion in market capitalization has evaporated from the world’s largest technology companies, marking a sharp reversal in sentiment toward the artificial intelligence boom.
The sell-off, which accelerated on Tuesday, reflects growing investor caution as major tech names face mounting pressure to justify premium valuations amid slowing growth expectations.
Tesla and Alphabet were among the hardest hit, with their recent earnings results failing to quell concerns about the durability of the AI-driven rally.
The decline extended losses from the previous session, signaling that the market’s appetite for risk in the sector has cooled significantly.
This repricing comes after a period of intense speculation around autonomous driving capabilities and AI infrastructure spending.
The wave of selling has triggered widespread doubt over whether the current valuation multiples are sustainable.