AI Stock Selloff Deepens

What happened

Global technology and AI-linked stocks sold off sharply, with the Nasdaq falling 1.9% and South Korea’s Kospi dropping 7.6%. Concern about future memory-chip oversupply added pressure after China’s CXMT announced a design meant to increase storage density. The retreat followed a hotter U.S. inflation reading of 3.7%, which raised concern that borrowing costs could stay high. Investors are also questioning whether debt-funded AI data centers will earn enough to justify their cost. CoreWeave chief executive Michael Intrator told staff that markets can misunderstand a new technology business. TSMC reported record quarterly profit and said AI demand remained strong. U.S. stock futures were lower.

How each side covered it

From the left

Left-leaning outlets framed the selloff as a crack in confidence around the AI boom, with attention on valuations, earnings and borrowing. The Guardian tied the retreat to inflation fears and possible rate hikes, saying traders were already wary of a heavily indebted sector. CNN emphasized tougher Chinese competition as another reason investors were souring on AI investments.