Global Tech Stocks Crash as AI Bubble Bursts

Global technology stocks experienced a sharp decline on Thursday, with many entering bear market territory as investors questioned the profitability of massive artificial intelligence investments. The S&P 500 has lost approximately $4 trillion in market value since October 6, 2026, with a single-day selloff on Thursday erasing $2.3 trillion.

Nvidia and Alphabet saw declines of 25% and 32% respectively, while other firms like SanDisk, Arm Holdings, and Coinbase dropped over 60%. The crash extended to Asian markets, particularly South Korea, where the Kospi fell due to its heavy concentration in memory chip producers Samsung and SK Hynix.

Investors attribute the rout to excessive capital expenditure on GPUs and data centers that has not yet generated sustainable revenue. Market pressure increased following reports that AI firm Anthropic suffered a $104 billion net loss over nine months. Observers have compared the event to the dot-com crash of the late 1990s, citing a bursting speculative bubble and potential regulatory scrutiny of data centers following U.S. mid-term elections.