Tech Stocks Drop Further Amid Doubts Over AI Spending

Technology stocks extended their losses on Thursday, after hot inflation data appeared to intensify concerns about the debt-financed growth of artificial intelligence companies.

The Philadelphia Semiconductor Index, a benchmark for the companies at the forefront of the A.I. race, fell as much as 4 percent before moderating to a loss of 0.9 percent for the day, adding to a 4.3 percent decline on Wednesday.

The decline took the index further into “correction” territory, defined as a drop of more than 20 percent from a stock’s recent peak and an unwelcome threshold for bearish investors. Of the 30 companies in the index, 25 are now in correction.

The tech-heavy Nasdaq also dropped sharply near the start of trading on Thursday, before bouncing back to a gain of 0.1 percent. The SP 500 rose 0.3 percent.

Article source: https://www.nytimes.com/2026/10/15/business/chip-stocks-technology.html