Technology stocks tumble globally amid AI valuation concerns

Global equity markets fell sharply as technology and semiconductor shares slumped. In Europe, indices in Frankfurt, Milan, Paris and London traded in the red, while Asian markets in Tokyo, Taipei and Seoul recorded heavy losses. Investors cited worries that massive spending on artificial‑intelligence projects may not deliver short‑term returns, heightened by the recent announcement that SpaceX is seeking additional debt financing. The correction also reflects uncertainty over a possible interest‑rate hike by the U.S. Federal Reserve.

The sell‑off revived references to former Fed chairman Alan Greenspan, who died at age 100. Greenspan’s 1996 warning about “irrational exuberance” was cited as a reminder that current tech IPO valuations and soaring semiconductor indices echo the dot‑com era’s excesses. Analysts noted that despite record demand for AI‑related chips, many semiconductor leaders posted steep declines as the market reassesses profitability.

Overall, the downturn underscores growing caution among investors about the sustainability of AI‑driven growth and the broader impact of monetary‑policy expectations on high‑growth sectors.