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$890 Billion Tech Selloff Puts Spotlight on AI Spending Risks
The shift comes as investors reassess whether leading tech companies can sustain cash generation amid concerns about runaway AI-related spending.
Wall Street is recalibrating its view of the largest technology companies after a sharp selloff that has wiped out roughly $890 billion in market value, according to The Wall Street Journal.
The outlet frames the move as a reaction to a changing profitability narrative, with investors no longer treating the biggest tech firms as automatic cash generators.
WSJ Markets reports that the focus is turning to whether AI spending is growing faster than returns, raising questions about the sustainability of spending levels across the sector.