The artificial intelligence trade is facing a severe correction, with more than two-thirds of technology stocks now trading at least 20% below their recent peaks.
This widespread drawdown marks a significant deterioration in sentiment for a sector that has been the primary engine of market gains over the past year.
A key index of chip manufacturers fell 7% in the session, underscoring the breadth of the pressure.
The sell-off is particularly acute in hardware components, where optical interconnect and memory chip stocks are leading the decline.
A key index of chip manufacturers fell 7% in the session, underscoring the breadth of the pressure.
This sharp reversal comes after the sector had more than doubled its value since the lows triggered by geopolitical tensions earlier in the year.
Investors appear to be reassessing the sustainability of the AI hardware rally, moving beyond selective profit-taking to broader caution.