Rough ride for AI stocks in 2026
Has the AI stock bubble popped? Tech stocks have been on a rollercoaster since the start of the year, as have equity markets, with fears growing that massive AI investments may never become profitable.
The Nasdaq Composite, the stock index that includes most of the major US tech stocks, has lost 2.5 percent this week despite rebounding on Friday.
Several of the so-called Magnificent Seven tech stocks have reported earnings results, and while posting strong performances, companies such as Amazon, Alphabet and Microsoft spooked investors by announcing plans to invest stratospheric sums to ensure they have sufficient computing power for an expected rise in demand for artificial intelligence services.
