Global tech sell-off intensifies, led by AI and chip stocks

Global technology stocks plummeted Tuesday as investor concerns about inflated valuations and rising interest rates triggered a broad sell-off led by artificial intelligence and chip companies. The Nasdaq Composite dropped 2.2% while the Nasdaq 100 fell more than 3.2%, with major chipmakers including Nvidia, Micron Technology and Arm suffering severe losses. The declines were compounded by Elon Musk's SpaceX, which has lost over $915 billion in market value since hitting a peak of $225 per share one week after its June 12 debut.

Markets worldwide reflected the turmoil, with South Korea's Kospi index falling 10% after Samsung and SK Hynix each declined more than 12%. Alphabet shares recorded their worst day in a year following the departure of high-profile artificial intelligence talent. Concerns about the sustainability of technology valuations, combined with fears that inflation from regional conflicts could drive higher interest rates and increase borrowing costs for AI infrastructure expansion, fueled the investor retreat.