Why did investors dump technology stocks this week? AI spending concerns trigger Wall Street sell-off

Technology stocks faced a sharp sell-off on Wall Street this week as investors grew increasingly concerned that the massive investments in artificial intelligence (AI) infrastructure may not translate into higher profits quickly enough to justify elevated valuations.

Although earnings reports from major technology companies showed continued growth in cloud computing and AI-related businesses, investors focused on the mounting costs of building data centres, purchasing advanced chips and expanding computing infrastructure.