Nasdaq Plunge as Tech Sell-Off Intensifies Amid AI Drought and Earnings Volatility

Tech stocks are cratering this week as investors flee risk, with the Nasdaq Composite posting its worst three-day slide since April and losing over $1.5 trillion in market value, per FactSet. The sell-off follows a drop in bitcoin to its lowest level since October 2024 and ongoing earnings season volatility. Headline declines are in AI software and semiconductors. An ETF tracking the software industry has lost for eight consecutive days, while Advanced Micro Devices (AMD) fell 17% after a softer-than-expected Q1 revenue forecast. Salesforce (CRM) is down 28% this year; Palantir (PLTR) is down 37% from its early-November high and Oracle (ORCL) is down 60% since its record high after a $300B OpenAI deal. Big Tech guidance for data center and AI infrastructure spending remains a key concern, with Microsoft (MSFT) down 10% and Amazon (AMZN) down 11% following earnings. Analysts warn valuations are stretched and perceptions of AI’s impact on software are shifting from beneficiary to disruptor, prompting a more selective and cautious market approach.