Wall Street’s major technology stocks faced renewed selling pressure on Monday, extending a period of volatility that has shaken confidence in the artificial intelligence sector.
The decline reflects growing investor concern that the rapid valuation expansion driven by AI enthusiasm may be reaching unsustainable levels.
The market turbulence follows the recent release of Kimi K3, a new AI model from Chinese developer Moonshot AI.
The launch has intensified scrutiny on the competitive landscape and the pace of innovation required to justify current premium valuations for US tech giants.
Investors are increasingly questioning whether the current earnings trajectory can support the lofty multiples assigned to the sector.
This development marks a sharp reality check for the equity bull market, which has been heavily reliant on technology performance.