Technology shares faced renewed selling pressure as market participants grappled with growing skepticism over the sustainability of artificial intelligence capital expenditure.
The selloff was fueled by concerns that escalating memory chip costs are forcing manufacturers to raise prices, which could ultimately curb consumer demand for electronics.
This dynamic has intensified worries that the rapid pace of AI infrastructure build-out may be hitting a wall of diminishing returns or cost constraints.
The market reaction extended beyond individual names, with broader tech indices struggling to find support.
The decline reflects a shift in sentiment from pure growth optimism to a more cautious assessment of margin pressures and demand elasticity.
Investors are increasingly focused on whether end-market demand can absorb higher component costs without a significant drop in volume, a question that looms large for the entire semiconductor value chain.