Analysis: Global Tech Sell-Off Tests Confidence in the AI Spending Boom
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Asian technology stocks fell sharply Thursday, extending a global sell-off as renewed concerns about U.S. inflation compounded investor doubts over the returns from massive AI infrastructure investments.
The retreat, which triggered a trading halt in South Korea, underscores growing pressure on a sector whose valuations depend heavily on future earnings. Higher financing costs could make those earnings less valuable today, while mounting credit-market concerns suggest investors are scrutinizing the risks associated with the AI spending boom.
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