Major technology stocks tied to artificial intelligence took a sharp downward turn Tuesday, rattling markets and raising concerns the sector’s billion-dollar promises may not be bearing fruit as quickly as hoped.
Shares of Palantir Technologies, the data-analytics firm widely viewed as an AI bellwether, plunged more than 9%, its worst tumble since March, after prominent short-seller Andrew Left of Citron Research renewed his bearish stance. Other major names felt similar shocks, highlighting underlying investor doubts: Oracle, in the midst of aggressive AI investments and a strategic pivot that included mass layoffs in its cloud division, saw its shares drop nearly 6%. Chipmakers integral to the AI boom struggled as well: Advanced Micro Devices fell 5.4%, Arm Holdings lost 5%, and Nvidia, the sector’s dominant force, slid 3.5%.
