US tech stocks edge back up after AI slowdown fears sent value of firms plummeting
Global tech stocks plunge over AI slowdown fears after US midtermspublished at 07:25 GMT
Trillions of dollars have been wiped off the stock value of
major tech firms in the US, Europe and Asia after the US
midterm elections sparked concerns of a slowdown in artificial intelligence
(AI) development.
Shares in firms across the tech sector plummeted following
Democratic wins in Tuesday’s midterms.
A number of Democratic candidates had run campaigns on slowing AI – and there are broader concerns about whether the huge sums being spent on the technology will pay off.
The tech-heavy Nasdaq composite index closed down by more
than 5.5% on Thursday, losing an estimated $2.5tn (£1.9tn) in market value,
according to Dow Jones data.
Other key US stock indexes also saw big
losses in their worst days since 2025.
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In Asia, tech-heavy indexes fell sharply on Friday morning
as firms that make the computer chips and other equipment that power AI saw
their shares slide.
The sell-off also hit European chipmakers. In European
trading on Thursday, shares in chipmaker Infineon fell by more than 8.5% while
tech equipment manufacturer ASML dropped by 6.5%.