AI Bubble Burst? Big sell-off in semiconductor stocks drag Nasdaq and global markets lower
Has the AI Bubble Finally Burst? Most global market investors may be concerned about this, given the recent drop in prices of semiconductor stocks. From Korea to Japan to the US stock market, leading equity indexes are seeing new bouts of selling in AI chip stocks.
The numbers tell a sobering story: Paul Hoffman, BestBrokers.com, shares the numbers. “As of July 2026, AI-linked companies account for 62.04% of the S&P 500’s total market capitalisation,” says Hoffman. This means this selloff has the power to shake the entire market, not just chipmakers.
